DAX leads as Edenred hits 52-week high; Stellantis slumps on trade fears

The German DAX (^GDAXI) led European equities higher on Tuesday, rising 0.57% to close at EUR 26,254.11, as a narrow breadth of gains and trade-related pressure on auto makers defined the session. The French CAC 40 (^FCHI) ended flat at EUR 8,452.69, while the Euro Stoxx 50 (^STOXX50E) rose 0.15% to EUR 6,457.33. Of 78 traded companies, 35 rose and 43 fell, with volume across the three benchmarks all failing to reach the 20-day average, indicating limited market participation.

Benchmarks end mixed as DAX leads

The DAX's gain of 0.57% was driven by its industrial and automotive sectors, though the CAC 40's flat close reflected weakness in its auto and consumer sectors. The Euro Stoxx 50's modest rise of 0.15% mirrored the broader market's lack of direction. All three indices remain well below their 52-week highs: the DAX is 1.2% below its peak, the CAC 3.5% below, and the Euro Stoxx 50 1.8% below. Over the past five days, the DAX gained 0.48%, while the CAC fell 0.67% and the Euro Stoxx 50 slipped 0.17%. Over the past month, the DAX has risen 3.52%, the CAC 0.55%, and the Euro Stoxx 50 2.79%.

Key numbers

• DAX: EUR 26,254.11 (previous: 26,106.60), +0.57% day, +0.48% 5-day, +3.52% 1-month, 0x 20-day average volume, 52-week range 21,863.81-26,573.50 (1.2% below high)
• CAC 40: EUR 8,452.69 (previous: 8,453.01), 0.00% day, -0.67% 5-day, +0.55% 1-month, 0x 20-day average volume, 52-week range 7,505.27-8,755.03 (3.5% below high)
• Euro Stoxx 50: EUR 6,457.33 (previous: 6,447.98), +0.15% day, -0.17% 5-day, +2.79% 1-month, 0x 20-day average volume, 52-week range 5,290.46-6,577.20 (1.8% below high)

Top 3 risers: Daimler Truck, Edenred, Zalando

Tuesday's session saw three stocks lead the gainers, with varying drivers and momentum. All three saw volume below the 20-day average, suggesting the moves were not driven by broad market interest.

Daimler Truck (DTG.DE)

Daimler Truck rose 4.09% to close at EUR 47.29, after opening at EUR 45.43. The 5-day gain of 3.64% marks a notable acceleration in momentum, though the 1-month rise of 2.83% remains modest. Volume was 0.29 times the 20-day average, indicating the move was not driven by heavy trading activity. The company, which produces commercial vehicles including trucks and buses, has faced headwinds from supply chain disruptions in recent quarters but has been expanding its electric vehicle lineup. The session's rise came after Archion, a company that provides software solutions to the transportation sector, reported strong maiden Q1 results. While the link between the two firms is not explicitly stated, investors may have viewed Archion's performance as a sign of improved demand for transportation technology, a key area for Daimler Truck. Daimler Truck's 52-week range is 33.46-50.08, and it is currently 5.6% below its 52-week high, suggesting there is still room for gains if momentum continues.

Edenred (EDEN.PA)

Edenred led the CAC 40's risers, gaining 3.45% to close at EUR 30.25, a new 52-week high. The stock has now risen 7.77% over the past five days and 14.54% over the past month, outpacing broader market gains. Volume was 0.34 times the 20-day average, indicating a moderate level of interest. Edenred, a French company, specializes in employee benefits, including meal vouchers, transportation allowances, and digital payment solutions. The company has been expanding its presence in fast-growing markets such as Latin America and Asia, where demand for employee benefits is rising. The recent rally may reflect improved investor sentiment toward the company's international expansion strategy, as well as strong organic growth in its core European markets. Edenred's 52-week range is 15.23-30.26, and it closed exactly at the upper bound, a milestone that could attract further buying interest if momentum persists.

Zalando (ZAL.DE)

Zalando rose 2.77% to close at EUR 23.41, after opening at EUR 22.78. The 5-day gain of 2.77% matches the day's move, suggesting a lack of clear direction over the past week. The 1-month decline of 14.69% remains a concern, however, as the company, Europe's largest fashion e-commerce platform, has faced challenges from inflation, supply chain issues, and increased competition from Amazon and local rivals. Volume was 0.25 times the 20-day average, indicating low liquidity around the stock. Zalando's 52-week range is 18.61-30.43, and it is currently 23.1% below its 52-week high, reflecting the broader challenges facing the fashion e-commerce sector. While the recent gain is a positive sign, investors will likely be watching for signs of stabilization in the company's financial performance, particularly its profit margins, in the coming quarters.

Top 3 fallers: Stellantis, Renault, Rheinmetall

Three stocks led the decliners, with trade concerns and profit-taking driving the moves. Volume varied, with Stellantis seeing the highest activity as investors reacted to the U.S. trade headlines.

Stellantis (STLAP.PA)

Stellantis was the worst performer on the CAC 40, slumping 5.07% to close at EUR 4.4135, after opening at EUR 4.649. The 5-day decline of 0.25% is minimal, but the 1-month drop of 11.89% is more significant. Volume was 0.59 times the 20-day average, indicating heavy trading activity, likely driven by the reported trade news. Stellantis, which owns brands such as Peugeot, Citroën, and Fiat Chrysler, has significant exposure to the U.S. and Canadian markets. The session's decline came after multiple reports highlighted escalating trade tensions between the U.S. and its allies, including threats of 50% tariffs on auto imports from Canada. Such tariffs would directly impact Stellantis's ability to export vehicles to the U.S., a key market, and could increase costs for its operations north of the border. The company's 52-week range is 4.375-10.494, and it is currently 57.9% below its 52-week high, reflecting long-term challenges in its profitability and market share.

Renault (RNO.PA)

Renault fell 4.37% to close at EUR 27.38, after opening at EUR 28.63. The 5-day decline of 3.56% is notable, though the 1-month gain of 4.74% suggests the stock had recovered some ground before Tuesday's drop. Volume was 0.36 times the 20-day average, indicating moderate selling pressure. Renault, a French auto maker, has been focusing on electrification and cost-cutting to improve its financial performance. The recent decline may be linked to concerns about the impact of rising raw material costs on its electric vehicle production, as well as ongoing competition from Tesla and other new entrants. The company's 52-week range is 24.66-37.97, and it is currently 27.9% below its 52-week high, reflecting the challenges facing the traditional auto industry as it transitions to electric vehicles.

Rheinmetall (RHM.DE)

Rheinmetall was the worst performer on the DAX, falling 3.50% to close at EUR 1,115, after opening at EUR 1,155.4. The 5-day decline of 8.15% is steep, reversing much of the 7.46% gain over the past month. Volume was 0.23 times the 20-day average, indicating low liquidity around the stock. Rheinmetall, a German defense and automotive components company, has been benefiting from increased defense spending in Europe, particularly in the wake of the war in Ukraine. The recent decline may be due to profit-taking after a strong run, as investors take profits on the stock. The company's 52-week range is 928.8-2,008, and it is currently 44.5% below its 52-week high, reflecting the significant upside potential if defense spending continues to rise.

Session takeaway: Narrow gains and trade-related pressure

Tuesday's session was defined by narrow gains and trade-related pressure, with the DAX outperforming the CAC 40 and Euro Stoxx 50. The top risers, including Edenred and Daimler Truck, were driven by specific news or technical factors, while the fallers, particularly Stellantis, were hit by broader trade concerns. Low volume across the benchmarks suggests that the moves may not be sustained, and investors may be waiting for more clarity on the trade situation and corporate earnings before making significant moves. The CAC 40's flat performance, despite the decline in Stellantis and Renault, highlights the resilience of other sectors, such as consumer staples and technology. Looking ahead, investors will be watching for economic data, including inflation figures and GDP growth, as well as corporate earnings reports, to guide their investment decisions in the coming weeks. For now, the market remains cautious, with no clear trend emerging amid ongoing uncertainty.