Upcoming developments for the DAX - let's discuss the future of Adidas shares instead.
The German stock market, represented by the DAX, has shown signs of stabilization on Monday, following significant losses last week, with the benchmark index currently up 0.5 percent and standing at 18,389 points. However, the picture is not as rosy for all companies. Adidas, a sports equipment manufacturer, is the clear loser in the DAX, with a loss of four percent today.
Despite the nervousness at the exchanges ahead of the upcoming interest rate decisions, Sartorius' share is leading the DAX with a gain of around 4.6 percent. This gain is not only higher than the DAX's overall increase of 0.5 percent but also surpasses the Euro Stoxx 50's overall increase of 0.7 percent.
The situation for Sartorius in terms of interest rate decisions is not specified. In contrast, the "big and decisive question" on the floor is whether the Federal Reserve (Fed) will reduce its key interest rate by 0.25 or 0.50 percentage points next week, a decision that is causing some apprehension in the US market. The European Central Bank (ECB), on the other hand, is not causing investor concern this week.
Analyst Wendy Liu from Barclays expects continued weak demand in China for Adidas. Liu, who is also a JPMorgan analyst, labeled Adidas with a "Positive Catalyst Watch" and maintained an "Overweight" rating, expressing optimism about the company's third-quarter results despite expecting weaker demand in certain Adidas product segments, such as Terrace products, in China. She highlighted Adidas' good product portfolio management and cost discipline as supportive factors for profitability.
The share of Adidas, identified by the WKN: A1EWWW, is currently experiencing a loss of four percent today. It's worth noting that there is a "massive resistance" for the DAX at the 21-day moving average, currently around 18,465 points, which Sartorius' gain has managed to surpass.
The European counterpart, Euro Stoxx 50, is up 0.7 percent and currently at 4,770 points. Despite Adidas' struggles, the overall European market seems to be holding steady, indicating a resilience that could bode well for the coming weeks.
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