German DAX Index Climbs; SAP Slips After EU Accepts Antitrust Commitments
Germany's blue-chip DAX index recovered, closing 0.89% higher on Thursday, after investor caution resurfaced as the US and Iran traded strikes for a second straight day."All that led to a clear reaction for oil prices, with Brent crude (+5.20%) posting its biggest daily gain since May 4th, peaking at $80.59 [per barrel] but closing a couple of dollars lower. For reference, that's still a long way beneath its recent peak in absolute terms, having approached $120/bbl during the initial phase of the conflict. But it's a clear shift away from the downward trajectory for oil back in Q2, and the various headlines revived fears about a more persistent inflationary shock," Deutsche Bank Research said.In other geopolitical news, Germany secured US approval to purchase RTX's Raytheon-manufactured Tomahawk cruise missiles, The Defense Post reported, citing a parliamentary statement by German Chancellor Friedrich Merz. The deal for the long-range missiles was struck on the sidelines of the NATO meeting in Ankara, Turkey.On the trade front, the Federal Statistical Office reported that Germany's calendar and seasonally adjusted trade surplus was 19.1 billion euros in May, above the revised 14.7 billion euros in April and the market forecast of 14.9 billion euros.Exports ticked up 0.9% month over month, against the revised 0.8% gain and the expected 0.3% decline. Meanwhile, monthly imports fell 2.5%, compared with the revised 1.1% growth previously and the consensus estimate of a 0.1% increase.On the corporate side, SAP (SAP.F) was one of the index's worst performers, closing 0.16% in the red, after the European Commission made the German software company's antitrust commitments legally binding to resolve competition concerns regarding its on-premises software aftermarket support.Meanwhile, Deutsche Bank Research upgraded its price target for Schott Pharma's (1SXP.F) buy-rated stock to 23 euros from 22 euros after the drug containment and delivery group published its preliminary fiscal third-quarter results."Schott Pharma has pre-released stronger-than-expected Q3 results, with preliminary figures pointing to 8% organic sales growth and a 27% EBITDA margin, coming in 4% and 2% ahead of consensus, respectively. Furthermore, the company has raised its FY26 guidance, now projecting 5-6% organic sales growth (up from 2-5%) and an EBITDA margin of 27-28% (previously ~27%), which should drive consensus earnings estimates up by around 4%. The company attributed the raised outlook to strong business performance and a newly reached agreement with a key customer for glass syringes," the research firm said, adding that the beat and guidance raise should act as a major catalyst for the stock. Schott Pharma was up 13.51% on Xetra.
