- Markets give back yesterday’s gains
- Negotiations on US debt limit in focus
- Fresenius benefits from good figures and good forecasts
Tuesday trading on the European markets brings worse investor sentiment. The DAX future is in the red today and is back below the psychological mark of 16,000 points. The economic calendar for today’s session is relatively tenuous and investors’ attention will be focused on individual company information. Things will get more interesting tomorrow, however, when investors learn about US inflation data.
Today, markets will be watching US President Joe Biden’s debate with the Speakers of Congress on revising the debt ceiling. Today’s meeting in Congress could pave the way for negotiations, or at least a series of talks. According to experts, this sequence of events also occurred in the past when the debt limit was raised.
The mood in Europe is bad during today’s trading. Source: xStation5 by XTB
News:
The shares of Fresenius (FRE.DE) up more than 7.5% in today’s trading after better-than-expected quarterly figures. In addition, future prospects are expected to be even brighter, as also confirmed by the company’s CEO, Mr. Michael Sen, who intends to improve the operational performance of the healthcare group. The company’s revenue came in at €10.2 billion in the first quarter, slightly ahead of analyst consensus. Operating profit was EUR 354 million, ahead of expectations of EUR 335 million. Investors are reacting primarily to the good results of the Kabi division (intravenous drugs). The company confirmed its profit guidance for 2023.
The share price of the fertilizer manufacturer K+S (SDF.DE) falls more than 6% after lowering earnings forecasts for next year. EBITDA is expected to be between €1.15 billion and €1.35 billion this year, compared to a previous guidance of €1.3 billion to €1.5 billion. The analyst consensus assumed a result of 1.41 billion euros. However, Q1 EBITDA exceeded market expectations, coming in at EUR 454 million, 13% lower than last year and 5.55% higher than market expectations.
The shares of Evonik (EVK.DE), which reported mixed quarterly results, are also trading under pressure. Analysts are primarily focused on full-year earnings guidance as the company is lowering its full-year earnings guidance to the low end of previous ranges due to the increasingly difficult environment.
Changes in institutional holdings in individual companies in the DAX (data from last session). Source: Bloomberg
Key percentage changes and information from individual companies of the DAX. Source: Bloomberg
Analysis DAX / DE30
The Futures on the leading German index (DE30) are trading lower today and have broken below the psychological barrier of 16,000 points. Source: xStation5 by XTB
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