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European indices trade lower
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DE30 tests support zone near 61.8% retracement
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Beiersdorf sees full-year revenue near upper limit of guidance
European stock market indices are trading lower during the first trading session of a new week. Poor showing of US equities on Friday as well as downbeat trading in Asia today set the stage for a poor start of a new week in Europe. Dutch AEX (NED25) is European worst performer today with a 2.6% drop. However, German DAX (DE30), French CAC40 (FRA40), Polish WIG20 (W20) and Italian FTSE MIB (ITA40) are also trading down 2% or more.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appGerman DE30 deepens downward move with an over-2% drop today. The index tested a support zone ranging around 61.8% retracement of the latest upward impulse but failed to break below. Bulls managed to push the price off the daily lows but, still, DE30 trades deep in red on the day. A break below the aforementioned retracement in the 13,400 pts area may pave the way for a retest of early-March lows near 12,500 pts. However, traders should keep in mind that a number of central banks' rate decisions are scheduled for the later part of the week, including decisions from the FOMC and Bank of England, and those may have a big impact on market sentiment.
Company News
Vincent Warnery, CEO of Beiersdorf (BEI.DE), said that he expects 2022 revenue to come near the upper limit of the company's own guidance. Beiersdorg plans to achieve above-market growth in organic sales in the medium term as well as expansion of EBIT margin by 50 basis points each year, starting from 2023. Warnery said that Beiersdorf will look for M&A opportunities to fill gaps in its offering.
Adidas (ADS.DE) sued its US rival Nike over alleged patent infringements. Adidas claims that Nike has infringed its patents with mobile applications and shoe-fitting technology.
DHL, subsidiary of Deutsche Post (DPW.DE), expects the global supply chain situation to stabilize in 2023 as it sees port congestion easing with more container vessels becoming available and demand for shippers weakening.
A recent upward spike on Beiersdorf (BEI.DE) faded and stock returned below the upper limit of €94.50-97.50. However, bulls are not giving up and another attempt of breaking above €97.50 can be observed today. The nearest resistance zone to watch, in case gains continue, can be found ranging below €99.50. Source: xStation5
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