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ECB will no longer pay interest on minimum reserves - banking sector shares drop after the decision
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Precious metals lose heavily against US dollar strength
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EUR loses after dovish comments from Lagarde and strong US macro data
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Quarterly results remain an important driver of market volatility
Thursday's session on European and US markets saw sizable rallies in the main stock market benchmarks. The German DE30 is currently up 1.5%. The No. 1 topics remain the incoming quarterly corporate results and the incoming macro data from the US, as well as Lagarde's comments. For more details, please refer to our earlier posts.
The strength of the US dollar resulting from Lagarde's dovish comments and strong macro data is pushing gold prices below the psychological barrier of 1950 USD. Source: xStation 5
The mood in Europe during Thursday's trading session is clearly positive. The only sectors currently recording declines are the oil industry, metals and some pharmaceuticals. Source: xStation 5
German DE30 futures are up nearly 1.5% during today's session, negating yesterday's declines and reaching new weekly highs. Source: xStation 5
News
Mercedes-Benz (MBK.DE) shares gained nearly 1.8 per cent today after the carmaker beat expectations for second-quarter EBIT and raised its full-year guidance for group EBIT and free cash flow.
Analysts at Warburg noted that the continued high profitability despite foreign exchange adversity and higher R&D spending is promising, also given the forecast for positive sales momentum for E-Class models in the second half of the year.
Selected results presented by the company and analyst consensus. Source: Bloomberg
New company forecasts
MBG EBIT for 2023 now seen at the previous year's level and industrial free cash flow expected to be "slightly above" the previous year's level. Mercedes-Benz Vans sales are now forecast at levels well above those of last year. Adjusted return on sales (RoS) is now expected in the range of 13-15%, compared to 11-13% previously.
Source: xStation 5
Siltronic (WAF.DE) reported sales for the second quarter that were in line with average analyst estimates.
Future forecasts:
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Group sales in 2023 14-19% lower y-o-y
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Capital expenditure to fall by more than half in 2024
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Sees a negative impact on business in the face of weak demand in the latter part of this year
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Company expects capital expenditure in 2023 to be around €1.3bn
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Tile volumes to fall by around 15% year-on-year in 2023
Selected results presented by the company and analyst consensus. Source: Bloomberg
Nordex (NDX1.DE) also shared its results. The shares are gaining close to 4 per cent after confirming earnings forecasts for the year.
Selected results presented by the company and analyst consensus. Source: Bloomberg
Source: xStation 5
Major percentage changes in individual companies of the DAX index. Source: Bloomberg
Information from individual DAX index companies. Source: Bloomberg
