The DAX Index edged lower this week as investors weighed the European Central Bank's latest interest rate decision, fresh US tariff announcements, and a wave of US corporate earnings from companies including Tesla and Alphabet. With the earnings season now shifting to Germany, several high-profile DAX components are set to report results next week. Here is a closer look at the key names to watch.
Deutsche Bank
Deutsche Bank shares have retreated from their year-to-date high of €32.97 reached earlier this month to trade near €29.97. The stock's next catalyst will be the bank's upcoming financial results. The earnings come amid a strong period for global banks: BNP Paribas and UniCredit recently posted solid numbers, while US giants Goldman Sachs, Morgan Stanley, JPMorgan, and Bank of America all reported robust results last week, driven by investment banking and trading operations.
Deutsche Bank's most recent quarterly report showed a return on tangible equity (RoTE) of 12.7%, up from 11.9% previously. Revenue rose to €8.7 billion, and assets under management reached €1.8 trillion. Analysts expect the bank to have benefited from the ongoing uptick in M&A and IPO activity. The earnings release will provide clarity on whether that momentum has continued.
Adidas
Adidas shares have surged more than 35% from their 2024 low, supported by the recently concluded World Cup tournament. The stock has since pulled back from its year-to-date high of €188 to around €176.50. In a recent statement, the company's CFO noted that the World Cup was a major success for Adidas, with event-related sales expected to reach approximately €1.5 billion. The company sold four times more jerseys than during the previous World Cup and twice as many balls.
Adidas will report its financial results next week, offering investors a deeper look at how the company is capitalizing on the World Cup momentum. The key question is whether the brand can sustain that boost in sales over the long term.
Mercedes-Benz, BMW, and Porsche
German automakers have faced significant headwinds in recent months as competition intensifies. Mercedes-Benz shares have fallen more than 28% from their 2024 high. BMW has dropped over 40% from its peak and is trading at its lowest level since 2020. Porsche has declined more than 60% from its all-time high, while Volkswagen has slumped over 70% from its peak.
These companies, which are among the most shorted stocks in Germany, are grappling with rising competition from Chinese automakers such as BYD and Xpeng. Volkswagen has already announced plans for major layoffs and potential plant closures. Traders will be closely watching the upcoming earnings reports from Mercedes-Benz, Porsche, and BMW for signs of how they are navigating this challenging environment.
Other DAX companies reporting next week include Linde, Siemens Healthineers, and HeidelbergCement. Later in the period, Bayer, Siemens Energy, Deutsche Post, and Rheinmetall will also release their numbers.
For broader market context, see our coverage of SpaceX Stock Sinks 3% as Starship Delay, Short Sellers Pressure Shares and Reddit Shares Plunge 30% as Google AI Deal Renewal Hits Snag.
This article is for informational purposes only and does not constitute financial advice.
