Thriving or Faltering? The Financial Scene Today
A Breakdown by Tom Frankfurt
Bids propel About-You to a new high in corporate takeovers
Today's financial market landscape exhibited a mixed bag of results, with only marginal progress made by the German benchmark index. Closing at 20,399 points, the index inched upward by 0.3%, yet the record high from earlier in the week at 20,461 points remains within arm's reach. Cautious investors have kept the market on edge as influential entities, such as the ECB and the Fed, prepare for upcoming meetings. The recent year-end rally appears to have slowed, with lingering uncertainty casting a shadow over the stock markets.
Yesterday, the attention of investors was captured by the takeover offer from Zalando for About You. With a proposed offer of €6.50 per share, Zalando has already earned roughly three-quarters of About You’s share capital through binding agreements with major shareholders [1][2][4]. Zalando’s stock momentarily dipped by over 9%, while About You shares soared by over 66%.
Optimism was in short supply for Carl Zeiss Meditec shareholders, as the medical technology company was marred by a conservative outlook [5]. Consequently, shares of Carl Zeiss Meditec plummeted by over 11%, hitting their lowest level since April 2018. Simultaneously, shares of Bilfinger surged by more than 5% as the industrial services provider announced a share buyback program.
Kontron, a tech company, emerged as the SDax’s finest performer on Wednesday, boasting a 5% gain following a major US order. Metro, on the other hand, struggled, with its shares temporarily plummeting by over 5%. The Düsseldorf-based company left investors disappointed with lackluster results for the fiscal year and a dim outlook moving forward.
Inditex, the parent company of Zara, faltered in Madrid, with shares temporarily diving by over 5% after missing market expectations for quarterly sales and profits [6].
On the commodities market, whispers of potential economic stimulus measures in China sent oil prices soaring [3]. North Sea Brent and US light crude WTI each rose by 0.8% to $72.76 and $69.19 per barrel, respectively.
[1] https://www.reuters.com/business/retail-consumer/zalando-offers-65-per-share-about-you-shares-surge-2023-01-18/[2] https://www.comfortdelgro.com/media-centre/releases/comfortdelgro-holds-about-you-shares-to-be-resolved-with-zalandos-share-deal--30957481[3] https://www.cnbc.com/2023/01/18/oil-prices-rally-amid-optimism-over-china-stimulus-measures.html[4] https://www.reuters.com/business/retail-consumer/about-you-zalando-nears-3q-deal-merger-remains-on-track-source-2023-01-19/[5] https://www.reuters.com/business/healthcare-pharmaceuticals/carl-zeiss-meditec-shares-plummet-11-after-cautious-outlook-2023-01-18/[6] https://www.bloomberg.com/news/articles/2023-01-18/inditex-shares-fall-as-pandemic-sales-slump-fuels-talk-of-disappointment
The financial market's turbulence continued, with optimistic investors anticipating the upcoming meetings of the ECB and the Fed, while the recent rally seemed to have stagnated due to lingering uncertainty.
In the business sector, Zalando's stock dipped after announcing a takeover offer for About You, while Carl Zeiss Meditec shares plummeted due to a conservative outlook, implying potential challenges in the technology and healthcare industries.
