The morning market overview, compiled by Dow Jones Newswires:
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+++++ DAILY THEME +++++
Drägerwerk significantly increased sales and earnings in the third quarter of 2025 and has become more confident about the year as a whole. Currency-adjusted sales grew by 10.1 (nominal: 7.6) percent to around 833 million euros. Both medical technology (currency-adjusted plus 10.2/nominal plus 7.3 percent) and safety technology (currency-adjusted currency-adjusted plus 9.9/nominal plus 7.9 percent) contributed to this. The group’s gross margin increased to around 45.6 percent from 43.5 percent a year ago. EBIT rose to around 57 (previous year: 24.4) million euros. The main reason for the good earnings development was the significant sales growth, which was offset by only a moderate increase in costs. The EBIT margin improved by 3.7 percentage points to 6.8 percent. Incoming orders increased currency-adjusted by 6.9 (nominal 4.9) percent to around 856 million euros. For the full year 2025, Dräger now expects sales and EBIT margins to be in the upper half of the previously forecast range. Specifically, Dräger now expects currency-adjusted sales growth of 3.0 to 5.0 (previously 1.0 to 5.0) percent and an EBIT margin of 4.5 to 6.5 (previously 3.5 to 6.5) percent.
+++++ DAILY THEME II +++++
SARTORIUS
REPORTS PROG PROG
3RD QUARTER 2Q25 y/y 2Q25 y/y 2Q24
Sales 843 +6% 837 +5% 794
EBITDA adjusted 247 +15% 244 +14% 215
EBITDA margin adjusted 29.3 — 29.2 — 27.1
Income adjusted after taxes/third parties* 75 +25% 72 +21% 60
Earnings per preferred share adjusted* 1.08 +24% 0.58 -33% 0.87
OUTLOOK 2025 – the company now expects:
– Increase in sales: around 7% (previously: around 6%)
– EBITDA margin adjusted: just over 29.5% (previously: around 29 to 30%)
– Figures in millions of euros, earnings per share in euros, margin in percent;
+++++ OUTLOOK FOR THE COMPANY +++++
07:00 CH/ABB Ltd, 3Q results
07:00 CH/Nestle SA, sales 9 months
07:00 CH/Docmorris AG, Trading Update 3Q
07:10 DE/Hypoport SE, operational key figures 3Q
07:30 TW/Taiwan Semiconductor Manufacturing Co Ltd, 3Q results
09:00 DE/Merck KGaA, Capital Markets Day
09:00 FR/Pernod-Ricard SA, sales 1Q
09:30 DE/Munich Re, PK at reinsurance meeting in Baden-Baden
1:00 p.m. US/Travelers Cos Inc, 3Q earnings
17:40 NL/Just Eat Takeaway.com NV, expiry of the deadline for sales to Prosus
18:00 FR/Essilor-Luxottica SA, 3Q sales
DIVIDEND DISCOUNT
(for German stocks and stocks from the Stoxx or Euro Stoxx 50 index)
Diageo: £0.63
+++++ ECONOMIC OUTLOOK +++++
– GB
08:00 GDP August
FORECAST: +0.1% yoy/+1.3% yoy
previously: 0.0% yoy/+1.4% yoy
Three-month rate
FORECAST: +0.3% gg Vq/kA
previously: +0.2% yoy/q/+1.2% yoy
08:00 Industrial production August
FORECAST: +0.1% gg vm/-0.7% gg vk
previously: -0.9% yoy/+0.1% yoy
– EU
11:00 trade balance August
FORECAST: n/a
previously: +5.3 billion euros
– US
2:30 p.m. Philadelphia Fed Index October
FORECAST: 9.5
previously: 23.2
+++++ OVERVIEW FUTURES / INDICES +++++
Current:
Index last +/- %
DAX Futures 24,239.00 -0.1%
E-Mini Future S&P-500 6,711.00 -0.1%
E-Mini Future Nasdaq-100 24,926.75 unv.
Nikkei-225 (Tokyo) 48,192.63 +1.1%
Hang-Seng (Hongk.) 25,799.27 -0.4%
Shanghai Comp. 3,916.10 +0.1%
Previous day:
DAX 24,181.37 -0.2%
DAX future 24,266.00 -0.3%
XDAX 24,159.55 -0.1%
MDAX 29,786.81 -1.0%
TecDAX 3,658.60 +0.3%
SDAX 16,874.35 -0.7%
Euro Stoxx 50 5,605.03 +1.0%
Stoxx-50 4,737.36 +0.7%
Dow Jones 46,253.31 -0.0%
S&P 500 6,671.06 +0.4%
Nasdaq Composite 22,670.08 +0.7%
+++++ FINANCIAL MARKETS +++++
EUROPE
Outlook: Market participants expect little change in prices on the stock exchanges. After the further decline in yields in the middle of the week, there is little change in returns. On the foreign exchange market, the euro can almost defend its recent recovery gains. “The DAX remains torn between the fantasy of interest rate cuts in the USA and the trade dispute,” said one market participant. This initially results in a wait-and-see attitude. The reporting season could once again provide impetus. The first thing to look at here is ABB’s business figures, followed by Nestle’s sales figures. For the technology sector, we look at TSMC’s business figures. In the afternoon, the economic index from the central bank branch in Philadelphia, the so-called Philly Fed, is on the agenda.
Review: Solid – The mood benefited from the expectation of further interest rate cuts from the US Federal Reserve, it was said. CMC said the Fed would soon flood the market with liquidity and a large portion of that money would find its way into the stock market. LVMH shot up 12.2 percent. The group returned to growth in the last quarter. In the wake of LVMH, Hermes rose by 7.4 percent, Kering by 4.8 percent and Richemont by 6.3 percent. The French leading index CAC-40 rose by 2 percent. The business figures for ASML, the largest stock in the Euro Stoxx 50, were also received positively. The price rose by 3.1 percent. “With the exception of sales, the figures are all at least in line with the forecasts or above,” said one market participant. ASML’s financial figures also supported other industry stocks such as STMicro (+1.2%) and Aixtron (+1.5%). Technology stocks rose 2 percent.
DAX/MDAX/SDAX/TECDAX
Shortly stated – the price losses of heavyweight Rheinmetall (-5.1%) were not helpful for the DAX. This means that Deutsche Bank’s price target increase was evaporated. “After the bull market, defense stocks are technically overbought and fundamentally no longer cheap,” explained one market participant. Renk fell by 8.6 percent, while Hensoldt lost 5 percent. In addition, Aurubis (-6.5%) were under strong pressure with a convertible bond from Salzgitter. Salzgitter made a total of 3.4 million Aurubis shares, or around 7.6 percent of the share capital, available to the converter. However, the exchange price was significantly higher than the exchange rate. Vossloh lost 10.1 percent. Oddo BHF had downgraded the share. For BASF, however, sales rose by 2.3 percent. After Berenberg’s sell recommendation on Tuesday, Citi now supported a buy recommendation.
XETRA AFTER-EXCHANGE
The subdued mood on the German stock market also dominated after-hours trading. Slightly positive guidance from Wall Street did not provide any support. Drägerwerk was valued 8.6 percent higher after the medical technology company appeared more confident for the current financial year. Flatexdegiro increased by around 3 percent. The company presented third quarter figures and raised its annual forecast.
USA – STOCKS
Slightly firmer – tentative hopes in the trade dispute and expectations of interest rate cuts supported the prices. According to US Treasury Secretary Scott Bessent, negotiations with China are now going according to plan. An agreement with South Korea on a trade agreement is imminent, said the minister. Above all, dovish statements from US Federal Reserve Governor Jerome Powell provided support. This had signaled further interest rate cuts. There were also once again positive business figures from the banking sector. Bank of America (+4.4%) was convincing. Morgan Stanley (+4.7%) also surprised positively. The Empire State Manufacturing Index for October came in much better than expected. The Fed’s “Beige Book” economic report showed economic activity little changed compared to the previous report. Eli Lilly gained 1.9 percent. The pharmaceutical company had achieved further clinical study successes with its diabetes and weight loss pill Orforglipron. Abbott Laboratories (-2.4%) performed as expected in the third quarter. In addition, the forecast for the adjusted annual result was made more precise. However, sales of diagnostics, nutritional products and medicines missed forecasts.
USA – BONDS
Bond market yields halted their downward trend that had begun when Fed Chairman Powell made a Interest rate cut had indicated in October. The positive trend on the stock markets is likely to have dampened interest in bonds. The yield on ten-year securities rose by two basis points to 4.04 percent.
+++++ FOREIGN EXCHANGE MARKET +++++
Foreign exchange last +/- % 0:00 previous day Wed, 5:15 p.m. % YTD
EUR/USD 1.1658 +0.1% 1.1644 1.1625 +12.1%
EUR/JPY 176.07 +0.1% 175.95 175.89 +8.2%
EUR/CHF 0.9273 -0.0% 0.9277 0.9285 -0.9%
EUR/GBP 0.8690 -0.0% 0.8693 0.8692 +5.3%
USD/JPY 151.04 -0.0% 151.10 151.30 -3.5%
GBP/USD 1.3415 +0.1% 1.3396 1.3375 +6.4%
USD/CNY 7.1074 +0.0% 7.1071 7.1080 -1.3%
USD/CNH 7.1303 -0.0% 7.1306 7.1308 -2.7%
AUS/USD 0.6491 -0.3% 0.6511 0.6517 +4.8%
Bitcoin/USD 111,068.05 +0.1% 110,953.60 110,877.95 +19.5%
(MORE TO FOLLOW) Dow Jones Newswires
October 16, 2025 01:33 ET (05:33 GMT)