Frankfurt Stock Outlook: Dax weakens - March high and balance sheets in focus

FRANKFURT (dpa-AFX) - The DAX is expected to post moderate losses on Thursday. However, these losses are likely to push the leading index below its previous record high from March at 23,476 points right at the start of trading, as roughly an hour before the stock market opened, the X-DAX signaled a 0.5 percent drop to 23,421 points for the German leading index. This is prompting renewed concerns. A sustained drop below this level would degrade the recent record run to just under 24,000 points to a "classic false breakout."

Investors are also focusing on numerous quarterly financial statements, including those from heavyweights such as Siemens, Telekom, and Allianz. There is also some economic data to evaluate, especially data from the US this afternoon. In addition to industrial production, retail sales and industrial surveys from the Federal Reserve Bank of New York and Philadelphia, as well as weekly jobless claims, will be released. All of this provides the US Federal Reserve with clues to confirm its wait-and-see stance regarding possible interest rate cuts, or perhaps to back down from it.

The Eurozone's leading index, the EuroStoxx 50, is also expected to be negative on Thursday.

Among the heavyweights in the DAX, the technology group Siemens is in the spotlight, having performed strongly in the second quarter and significantly better than expected. Its annual forecast was reaffirmed. Also not included is the recently completed acquisition of the US software group Altair. The share price rose on the Tradegate trading platform compared to the Xetra closing price.

The insurance group Allianz also sees itself on track to achieve its profit target for the current year – despite higher losses from natural disasters at the beginning of the year, which, however, was not enough for investors in pre-market trading. The stock fell on Tradegate.

Meanwhile, Deutsche Telekom continued to benefit from the growth of its US subsidiary T-Mobile US and slightly raised its earnings outlook for the full year, which resulted in moderate gains for the share price before the market opened.

RWE and the Darmstadt-based pharmaceutical and technology company Merck also released figures, weighing on both shares on Tradegate. The energy company reported declining operating profits, which should not have come as a surprise, however. Merck lowered its targets for the year due to recent sharp exchange rate fluctuations, such as the US dollar.

Among the second- and third-tier companies that also published their quarterly financial results in large numbers, thyssenkrupp might be worth a look, having fallen sharply on Tradegate. Douglas , on the other hand, gained significantly in premarket trading and is likely to continue its recovery as trading opens./ck/zb