German Shares Recover; Adidas Climbs on FY26 Outlook Upgrade

11:53 AM EDT, 10/21/2026 (MT Newswires) -- German equities recovered on Wednesday, with the blue-chip DAX index jumping 1.35%, as positive momentum from corporate earnings, including adidas' (ADS.F) surprise update, helped offset concerns regarding high oil prices and rising bond yields. "Strong" brand momentum and "solid" full-price sell-through enabled adidas to deliver a third-quarter EBIT that came in 36% ahead of consensus, according to Metzler Capital Markets. This earnings strength was anchored by a gross margin of 54.3% reported, or 51.5% excluding the tariff refund, beating the 51.3% consensus. Against this backdrop, the German sportswear maker upgraded its full-year 2026 EBIT target to 2.5 billion euros from 2.3 billion euros, implying a 4% upgrade to analyst estimates. "Overall, the stock may open higher first thing this morning as a positive unscheduled update was not widely expected judging from our conversations and the print compares very favourably to early Q3 reporting across the sector. We see the print as providing another compelling proof point of adidas continuing to expand market share while delivering profitable growth amid a challenging environment. We reiterate our Buy rating," Metzler said. Adidas closed the trading day 1.68% higher. Meanwhile, Delivery Hero's (DHER.F) planned divestment of its Foodpanda Taiwan unit to Grab Holdings' A2G Holdings failed to secure regulatory approval from Taiwan's Fair Trade Commission. The German online food delivery company said in a press release that it retains the right to appeal and is shielded by "appropriate" protections, including a break fee arrangement, while Grab told MT Newswires that it is "disappointed" by the outcome as it reaffirmed the strength of its core Southeast Asian operations. Delivery Hero lost 0.66% at closing. Mercedes-Benz Group (MBG.F) Chief Executive Officer Ola Källenius warned at the Berlin Global Dialogue that European Union automotive restrictions aimed at protecting local industry will drive up production costs, Bloomberg News reported. Källenius noted that automakers rely on global supply chains and argued that added trade barriers would only disrupt manufacturing and inflate costs. The German carmaker ended the session 0.77% in the red. On the geopolitical front, Reuters reported that Iran informed Pakistan's army chief Asim Munir during mediation efforts in Tehran that it refuses to negotiate with the US until its demands are met. Concurrently, Danske Bank highlighted that escalating hostilities involving Saudi Arabia, Iran-backed Houthi forces, and Russia-Ukraine energy infrastructure attacks have also driven oil prices up by over 10% this month, raising supply risks further.