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European markets trade lower
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DE30 pulls back from key resistance
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Solid earnings from Puma, BASF and Deutsche Bank
European stock markets are trading lower on Wednesday, following a lacklustre performance of equities during the Asian session. Polish WIG20 (W20) and Russian RTS (RUS50) are top laggards, trading over 1% lower on the day. Not a single blue chips index from the Old Continent is trading higher today. Dutch AEX (NED25) can be seen as an outperformer as it drops "only" 0.2% at press time.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 halted the upward move at the resistance zone marked with the 78.6% retracement of the downward move started in August. In case the ongoing pullback deepens, the first major support zone to watch can be found in the 15,550 pts area. This zone is marked with the 61.8% retracement of the aforementioned downward move as well as the 23.6% retracement of a recent upward impulse and a lower limit of a local market geometry. Next supports are also marked with retracements of both moves in 15,400 pts area and 15,270 pts area.
Company News
Puma (PUM.DE) reported Q3 revenue at €1.90 billion, up 20% YoY and above expected $1.82 billion. EBIT was 21% YoY higher at €229 million (exp. €207.1 million) while net income increased 27% YoY to €143.8 million (exp. €128.9 million). Puma narrowed its full-year EBIT forecast from €400-500 million to €450-500 million range. Full-year revenue, assuming constant FX rates, is expected to increase 25%, up from previous 20%.
BASF (BAS.DE) boosted its full-year outlook to reflect rising prices of its products. German chemical company expects adjusted EBIT to reach €8 billion in 2021, up from a previous forecast of €7.5 billion. Earnings for the third quarter topped analysts' estimates with sales reaching €19.67 billion (exp. €17.83 billion). Adjusted EBIT reached €1.87 billion (exp. €1.82 billion) and net income reached €1.25 billion, compared to a net loss of €127 million in Q3 2020.
Deutsche Bank (DBK.DE) reported Q3 net revenue at €6.04 billion (exp. €5.79 billion) with investment banking revenue coming in at €2.23 billion (exp. €2.02 billion). Net income increased 6.6% YoY, to €194 million while pretax profit reached €554 million (exp. €484.9 million). Net interest income stood at €2.77 billion (exp. €2.60 billion). Deutsche Bank expects group revenue to reach at least €25 billion in 2022.
Beiersdorf (BEI.DE) will replace Deutsche Wohnen (DWNI.DE) in the DAX index, effective October 29, 2021. Decision is a result of Deutsche Wohnen being acquired by Vonovia (VNA.DE).
Beiersdorf (BEI.DE) is set to reclaim its spot in the German blue chips index at the end of this week. Company will replace Deutsche Wohnen. Stock launched today's trading with a bullish price gap but advance was halted a touch below the 50-session moving average (green line). Source: xStation5
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