Stock market in the morning: with adidas, ASML, LVMH, Volvo – Nord LB, among others

Inflation in the euro area continued to fall in March. Compared to the same month last year, consumer prices rose by 2.4%. Inflation was 2.6 percent in February and 2.8 percent in January. Energy prices fell by 1.8% in March (February: -3.7%), while food, alcohol and tobacco prices rose by 2.6% (February: +3.9%). Manufactured goods rose by 1.1% (February: +1.6%) and service prices remained unchanged at 4.0%. Core inflation, which excludes energy, food, alcohol and tobacco prices, fell from 3.1% to 2.9%.

Inflation in the UK also fell to its lowest level in two and a half years in March, although it is falling more slowly than expected. Compared to the same month last year (y/y), consumer prices rose by 3.2%. In February it was 3.4%. Cheap food in particular caused the decline. Lt. According to the US Federal Reserve’s Beige Book economic report, economic activity in the US is expanding slightly. Ten out of twelve districts (previously: eight) reported growth.

The weather in the real estate climate of Deutsche Hypo brightened a lot in April compared to the previous month (+5.7% to 80.2 points). The 80-point mark was reached for the first time since August 2022. The investment environment mainly contributed to this (+10.7% to 67.6 points). The income climate also recorded a slight increase (+2.1% to 93.4 points). The situation between property classes was also always good. Retail climate (+11.5% to 68.0 points) and hotel climate (+7.6% to 96.9 points) increased the most. Although the housing conditions (+4.4% to 128.0 points) and the office climate (+4.3% to 58.0 points) were almost the same with their increase, the increase in the equipment climate (+0.9% to 109 .3 points) is weak in comparison. Overall, the rate remained low, especially in the retail and office classes.

Everyday view

Today, the main focus will be on the April figures for the Philadelphia Index. This regional indicator of US sentiment is already important to markets due to its long history. The New York Fed’s counterparty trading conditions were now only marginally improved, which was more likely to be seen as a negative surprise. Speeches from key central banks should also be taken into account. Especially from the perspective of the FOMC, uncertainty about the future plans of monetary policymakers still high!

Stock markets

European stock markets pared earlier gains in late trade after US indices turned negative. Concerns over the rise in the Middle East and cautious voices from the Fed environment again slowed things down.

DAX +0,02%; MDAX -0,18%; TecDAX -1.07%; Dow Jones -0.12%; S&P 500 -0.58%; Nasdaq Company. -1,15%.

Follow up

Thanks to better-than-expected results in Q1 2024, adidas gained a strong position in the DAX yesterday. Sales rose by 4%, or even by 8% after adjusting for currency effects (Fx adj.), to EUR 5.458 billion Gross margin rose by 6.4 pp to 51.2% and operating results reached EUR 336 million (previous year: EUR 60 million). Management later raised its full-year forecast: sales increase wb in the high (previously: mid) single-digit percentage range; Operating result around EUR 700 million (previously: around EUR 500 million).

Indexing machine manufacturer ASML from the Netherlands disappointed with its incoming orders in Q1 2024. The amount was EUR 3.6 billion, where analysts expected EUR 5.4 billion. Consolidated profit, however, was slightly above expectations at EUR 1.22 billion. The company is looking ahead to the second half of the year and has confirmed its full-year outlook.

The luxury group LVMH, with brands such as Louis Vuitton, Moet & Chandon, Hennessy, Tiffany, Bulgari, Rimowa, among others, experienced a sales increase of 3% to EUR 20.7 billion in Q1 2024. The perfume and cosmetics division was very interesting. and an increase of 7%.

Swedish truck maker Volvo beat analysts’ expectations of SEK 16.9 billion with an adjusted operating profit of SEK 18.2 billion.

Foreign currency and raw materials

The EUR settled against the USD yesterday.

Concerns about an economic slowdown in China and rising U.S. crude oil inventories pushed concerns about supply constraints to the background. Oil prices fell.

Disclaimer: This article is a column from Nord LB. 4investors is not responsible for the content of the column and therefore does not reflect the views of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

Note about conflict of interest: The author or other people from the editorial team of 4investors have direct positions in financial instruments / derivatives on the financial instruments of companies that are discussed in this article and whose prices may be affected by reporting: LVMH .