Germany's DAX Index Slips; BASF Shares Drop After Preliminary Q2 Update
German shares ended Wednesday on a downbeat note, with the blue-chip DAX index closing 0.51% lower, as the market weighed fresh earnings and corporate updates alongside news on tensions in the Middle East. BASF (BAS.F) was one of the index's worst-performing stocks, ending the session 2.93% in the red, after the publication of its preliminary second-quarter results. Investors looked past the German chemical company's year-over-year sales jump to 17.2 billion euros from 14.8 billion euros, choosing instead to focus on BASF's negative free cash flow for the quarter and a downgraded macroeconomic outlook impacted by the geopolitical volatility caused by the US-Iran war. Meanwhile, BofA Global Research cut the price objective of Rheinmetall's (RHM.F) buy-rated stock to 1,300 euros from 1,770 euros, citing concerns about the defense group's weapons and ammunition growth outlook amid shifting procurement priorities. "Weapons & Ammunition (W&A) remains the largest division in Rheinmetall's 2030 framework. At the [capital markets day], management outlined a path to EUR14-16bn of revenue & c.30% EBIT margins by 2030, driven by artillery, medium-calibre ammo and missiles. However,.
German shares ended Wednesday on a downbeat note, with the blue-chip DAX index closing 0.51% lower, as the market weighed fresh earnings and corporate updates alongside news on tensions in the Middle East.
BASF (BAS.F) was one of the index's worst-performing stocks, ending the session 2.93% in the red, after the publication of its preliminary second-quarter results.
Investors looked past the German chemical company's year-over-year sales jump to 17.2 billion euros from 14.8 billion euros, choosing instead to focus on BASF's negative free cash flow for the quarter and a downgraded macroeconomic outlook impacted by the geopolitical volatility caused by the US-Iran war.
Meanwhile, BofA Global Research cut the price objective of Rheinmetall's (RHM.F) buy-rated stock to 1,300 euros from 1,770 euros, citing concerns about the defense group's weapons and ammunition growth outlook amid shifting procurement priorities. "Weapons & Ammunition (W&A) remains the largest division in Rheinmetall's 2030 framework.
At the [capital markets day], management outlined a path to EUR14-16bn of revenue & c.30% EBIT margins by 2030, driven by artillery, medium-calibre ammo and missiles.
However,.