DE30 edge lower ahead of BoE and ECB decisions

• European stock markets trade lower
• ECB and BoE decisions in focus
• Siemens Healthineers (SHL.DE) stock gains after solid quarterly results

European stock markets launched today's session higher but have erased early gains after January’s services PMI for Italy and Spain turned out to be weaker than expected. Now investors’ attention will focus on BoE and ECB decisions. The Bank of England is expected to raise its key Bank Rate by 25bps to 0.5%, following a 15bps increase in December in order to contain surging inflation. It would be the first back-to-back increase since 2004, pushing borrowing costs to the highest level in 2 years. Meanwhile policymakers at the ECB will have a harder time pushing back against rate hike talks after Wednesday’s preliminary data showed Eurozone consumer prices rise at a record 5.1% in January over the same month in the previous year.

DE30 - despite the upbeat start of yesterday's session buyers failed to uphold momentum and the index bounced off 200 SMA (red line). Currently the index is again testing 15,550 pts level which coincides with the lower limit of the triangle formation. Should sellers manage to push the price below the 15,550 pts zone, then support 15148 pts may be at risk. This level coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. On the other hand, if buyers manage to regain control, upward move may accelerate towards all-time high at 16330 pts. Source: xStation5

Company news:

Siemens Healthineers (SHL.DE) stock rose more than 2% after the medical device maker posted better than expected quarterly results and lifted 2022 targets. Earnings rose 22% to €898 million well above analysts’ estimates of €774 million. Revenue jumped 31% to €5.07 billion, beating market estimates of €4.87 billion thanks to increased demand for rapid COVID-19 antigen tests and approval for its tests in the United States. 

Siemens Healthineers (SHL.DE) stock took a hit in January, however sellers failed to break below 200 SMA (red line) and price resumed upward move. Stock launched today’s session with a bullish price gap, however buyers struggle to break above local resistance at €62.05, which is marked with previous price reactions and 50 SMA (red line). As long as the price sits below, another downward ipulse may be launched towards support at €56.57. Source: xStation5

Infineon (IFX.DE) stock fell over 5.0% after the company posted upbeat quarterly results and lifted its revenue forecast for 2022 as it predicted that a global shortage of semiconductors will continue well into the current year. First quarter profit climbed to €457 million from €256 million in the same quarter last year. Adjusted earnings per share for the quarter grew to €0.41 from €0.28 in the prior year.

Delivery Hero (DHER.DE) stock fell over 3% after Goldman Sachs maintained its "buy" rating, however it lowered the price target from € 195 to €150.

HeidelbergCement (HEI.DE) shares rose 0.50% after company CEO Dominik von Achten told Reuters that company can match or even exceed last year’s growth in 2022, and will likely unveil more ambitious CO2 reduction targets at a capital markets day in May.