US import taxes put pressure on DAX: examining the share changes of Siemens Energy, HeidelbergCement, and Zalando.
Here's the new spin on the market situation:
The DAX is bearin' a bruise today following the trade tariffs dished out by none other than Donald Trump, U.S. President. And that ain't all – the index is currently 0.9% down from yesterday, clockin' in at 22,635 points. The Euro Stoxx 50, its European buddy, ain't faring much better, with a decrease of 0.55% and standin' at 5,381 points.
You might call 'em jitters on the German stock market – experts at Landesbank Helaba are pointin' the finger at Trump's plans to slap auto import tariffs from April 3, as well as the stalled coalition talks in Berlin. But Index Radar reckons "at least part of the cat's outta the bag" when it comes to these auto tariffs. 'Cause here's the kicker: the new tariffs will only apply to the value added in Canada and Mexico, makin' life a little easier for German automakers.
Auto stocks take a nose dive in the DAX
In the DAX, auto stocks slid to the bottom of the barrel. Stocks like Porsche AG, Mercedes-Benz, BMW, and Volkswagen tumbled between 2.3 and 4.5 percent, with Continental, the supplier and tire manufacturer, sufferin' significant losses as well. The sector's under pressure all over Europe too, with the tariffs gettin' slapped on every imported car, from compacts to SUVs and light commercial vehicles.
Siemens Energy, Heidelberg Materials, Zalando: These DAX stocks are grabbing all the attention
There's one DAX stock that's standin' out like a sore thumb today: Zalando's stock is currently leadin' the pack with a gain of 3.6 percent. The British retail conglomerate Next has provided a solid wind under Zalando's sails.
But it ain't all sunshine and roses for Siemens Energy and Heidelberg Materials. Both stocks are languishin' near the bottom of the DAX with losses of 4.4 and 5 percent, respectively. It's worth mentionin' that analyst Simon Toennessen at Jefferies has boosted his price target for Siemens Energy ahead of its second-quarter results on May 8, from 50 to 55 euros, while maintainin' its "Hold" rating. The analyst believes that the company's strong gas and network trends, coupled with a continued weakness in the wind business, more than offset the trade tariff discomfort. He expects a positive second quarter for Siemens Energy with an order intake of 11 percent, which is higher than the consensus estimate from Vara Research.
After reachin' a record high on Wednesday mornin', Heidelberg Materials' shares took a turn for the worse on Thursday. They sank like a stone at the DAX bottom after gainin' 40 percent in the past four weeks. This was thanks to Heidelberg Materials bein' seen as a likely beneficiary of Germany's infrastructure package. Analyst Elodie Rall from JPMorgan, however, gave investors a reason to think twice before hoppin' aboard the Heidelberg Materials bandwagon. She predicts a 5 percent lower operating result on a comparable basis for the first-quarter report on May 8. Then again, she noted that weather-related challenges in the US and Eastern and Northern Europe, and the postponement of price adjustments to the next quarter, could be contributin' to the sector's less-than-stellar performance.
With a hat tip to dpa-AFX
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- The current state of the market is influenced by trade tariffs introduced by Donald Trump, causing jitters on the German stock market.
- The DAX is currently 0.9% down, with the Euro Stoxx 50 showing a decrease of 0.55%.
- Auto stocks in the DAX, including Porsche AG, Mercedes-Benz, BMW, Volkswagen, and Continental, have slid significantly.
- The auto tariffs proposed by Trump will primarily impact the value added in Canada and Mexico, offering a bit of relief to German automakers.
- Among the DAX stocks, Zalando is leading with a gain of 3.6%, boosted by the British retail conglomerate Next.
- Siemens Energy and Heidelberg Materials, however, are languishing near the bottom of the DAX with losses of 4.4% and 5% respectively.
- Analyst Simon Toennessen at Jefferies has boosted his price target for Siemens Energy, believing the company's strong gas and network trends will offset the trade tariff discomfort.
- Heidelberg Materials, which reached a record high earlier this week, has seen its shares sink after gainings 40% in the past four weeks.
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