DE30: DAX fails to react to US CPI reading; company results in focus!

•  DE30 gains close to 0.4%, reaction to CPI reading wiped out

• Allianz (ALV.DE) shares rally after quarterly results

• Siemens AG (SIE.DE) fails to replicate the trend and loses noticeably

• Results from Henkel (HEN3.DE), Rheinmetall (RWE.DE) and Hapag-Lloyd (HLAG.DE)

Thursday's trading session brings a clear improvement in sentiment on European markets. The DE30 alone is currently gaining close to 0.4%. The CPI reading from the USA temporarily boosted sentiment in Europe, nevertheless the scale of the additional rises did not last long. 

The mood in Europe improved markedly during Thursday's trading session, with most individual sectors posting gains on a daily basis. The exceptions to this are the electronic equipment, pharmaceuticals and Siemnes AG (SIE.DE) and Rheinmetall (RHM.DE) sectors. Source: xStation 5

The quotations of contracts based on the German DE30 are rebounding from the limits set by the 100-day exponential moving average (purple curve) and are currently testing the resistance set by the 50-day exponential moving average (blue curve).  Source: xStation 5

News:

Henkel (HEN3.DE) shares are currently trading close to 1.2% higher following the publication of better-than-expected results for the first half of this year. What's more, the company has raised its earnings forecasts for 2023. The company now expects organic sales to grow by 2.5%-4.5% (previously forecast growth of 1%-3%). EBIT for H1 was up 7.6% year-on-year. As Credit Suisse analysts report, the decline in volumes was offset by prices alone in this half-year. The company's EBIT and EPS for H1 beat consensus by around 5%. 

Company stock chart, D1 interval. Source: xStation 5

The shares of Rheinmetall (RWE.DE), one of the world's largest manufacturers of arms and ammunition, lost nearly 3% following the publication of its Q2 2023 results. Although the results themselves confirmed an increase in year-on-year revenue growth, the sheer scale of the increase failed to surprise analysts, and operating profit came in below expectations. The company confirmed its forecasts for the year, but chose not to raise them despite a strong order backlog (up 17% to around EUR 30.1bn).

Rheinmetall's consolidated sales rose by just over 6% to around EUR 1.5 billion, slightly below expectations. 

Company stock chart, D1 interval. Source: xStation 5

The shares of insurer Allianz (ALV.DE) are gaining nearly 3% during today's session, and the company itself is currently one of the best performing companies in the DAX index following the publication of better-than-expected quarterly results. Net profit attributable to shareholders rose by 18% year-on-year to €2.33 billion. Analysts had expected a profit of €2.3 billion. The company confirmed its operating profit forecasts for the year (between €13.2 billion and €15.2 billion). 

Company stock chart, D1 interval. Source: xStation 5

Hapag-Lloyd (HLAG.DE) shares are down close to 3.2% today after its H1 results showed a 67% year-on-year decline in net profit. However, the company maintained its full-year forecasts. Moreover, the company sees an increase in volume and rates recently. On the other hand, inflation, geopolitical uncertainty and large inventories are still elements of risk. 

Volumes fell 3.4% to 5.8 million 20-foot equivalent units (TEUs) year-on-year, as freight demand declined on Asian and European trade routes to North America and freight rates fell 38% year-on-year to US$1,761 per TEU.

EBIT for 2023 is expected to be in the range of €2-4bn. EBITDA is expected to reach €4-6bn. 

Company stock chart, D1 interval. Source: xStation 5

However, Siemens AG (SIE.DE) suffered the largest daily declines, losing more than 4.5%. Siemens sees a weakening demand trend, as evidenced by its Q3 results. The company is lowering guidance for the digital business, sees weakening demand in China and sees a decline in orders in all regions. Earnings from the company's industrial division for the quarter fell 4% year-on-year to €2.75 billion against expectations of €2.9 billion. The company lowered its forecast in the digital business sector. Revenue growth is now expected to be between 13% and 15% against previous forecasts of 17%-20%. The company's total revenues for Q3 came in at €18.89 billion against expectations of €19.27 billion. 

Company stock chart, D1 interval. Source: xStation 5

Biggest percentage changes in individual companies of the DAX index. Source: Bloomberg Finance L.P.

Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.