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European markets trade higher
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DE30 reaches fresh all-time high
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Preliminary earnings reports from Daimler, HeidelbergCement and HelloFresh
European stock markets are trading higher during the final trading session of the week. German DAX (DE30), Austrian ATX (AUT20) and Russian RTS (RUS50) are the best performing European indices, gaining 1% each. On the other hand, Polish WIG20 (W20) can be seen as laggard as it is the only major European index trading lower.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 broke above the upper limit of a recent trading range near 15,300 pts and a very strong upward move followed. German index reached fresh all-time highs and continued to rally. DE30 broke above 15,400 pts and the upward move was halted at the 15,440-15,450 pts resistance zone. This zone is marked with the 127.2% exterior retracement of the early-2020 pandemic shock and the 161.8% exterior retracement of the downward move launched on April 6, 2021. This is a key near-term resistance zone to watch.
Company News
European car sales surged 63% in March, pushing Q1 sales growth to 0.9% YoY. Very high growth rate can be ascribed to low base from a year ago. In absolute terms, sales at 1.39 million units were the highest since June 2019.
Henkel (HEN3.DE) expects Q1 organic sales growth of around 7%.
Daimler (DAI.DE) released Q1 preliminary results today. German carmaker said that its Q1 EBIT increased from €4.96 billion in 2020 to €5.75 billion in 2021. Company said that strong momentum at Mercedes-Benz was seen in all regions, especially in China and it had a favourable impact on product mix and pricing. Carmaker will publish full Q1 results on April 23.
According to preliminary results from HeidelbergCement (HEI.DE), the company generated €3.96 billion in Q1 revenue (exp. €3.87 billion).
HelloFresh (HFG.DE) released preliminary Q1 earnings today. German meal-kit company said adjusted EBITDA during the quarter reached €155-165 million (exp. €138 million) while revenue stood at €1.44-1.45 billion (exp. €1.21 billion). Solid results encouraged management to boost full-year forecasts. HelloFresh expects full-year sales to increase 35-45% on constant FX assumption, up from previous forecast of 20-25% increase.
Analysts' actions
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Deutsche Wohnen (DWNI.DE) upgraded to "buy" at Societe Generale. Price target set at €52.80
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MTU Aero Engines (MTX.DE) upgraded to "outperform" at Oddo BHF. Price target set at €235
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BMW (BMW.DE) downgraded to "underweight" at Morgan Stanley. Price target set at €80
HelloFresh (HFG.DE) launched today's trading with a bullish gap, thanks to full-year forecast upgrade. However, stock was unable to reach all-time high at €77.85 and has started to erase gains. The near-term support to watch in case declines deepen can be found at 61.8% retracement of a recent downward move (€68.20). Source: xStation5
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