DE30 fails another test of 15,550 pts area

• European markets trade mixed

• DE30 tested 15,550 pts area but failed to break above

• Sartorius and Deutsche Boerse released earnings

European stock markets are trading mixed on Wednesday - German, Dutch, Italian and Spanish equities post small gains while indices from France, UK and Russia drop slightly. Investors seem to struggle to figure out what's next given solid US earnings and risk associated with accelerating inflation. Numerous Fed members are set to speak later in the day and may offer some fresh hints at the latter issue. However, it is unlikely that they will make any major announcement two weeks before the FOMC meeting.

Jens Weidmann, President of Deutsche Bundesbank, announced that he will step down from the position at the end of 2021. German central bank chief was seen as one of the most hawkish central bankers in Europe. While he said that his decision was made due to personal reasons, some may see it as a sign of dissatisfaction with European monetary policy and a more sustained pick-up in inflation. Euro ticked lower on the news but the move was barely noticeable.

Source: xStation5

After a rather muted session yesterday, DE30 experienced some more volatile swings at the start of today's cash trading in Europe. German index dropped at the start of the session and tested the 200-period moving average (H4 interval, purple line). However, bears were unable to push the price lower and recovery started. Nevertheless, recovery move was halted at the resistance zone marked with 61.8% retracement of recent correction (15,550 pts). Those two technical level - 200-period moving average and 61.8% retracement are two near-term levels to watch. Note that the index has been slowly moving higher following Monday's drop therefore line of least resistance seems to be upward sloping. Breaking above the 15,550 pts area would generate a strong bullish signal as this area is marked with the upper limit of the Overbalance structure and a break would hint at trend reversal.

Company News

Sartorius (SRT.DE) decided to maintain its full-year forecasts following the release of Q3 earnings. Company still expects sales at constant FX to rise 45%, adjusted EBITDA margin to reach about 34%. Investments in full-2021 are expected to reach €400 million, or around 12% of sales. Sartorius had sales of €897.7 million in Q3 2021 and net income of €143 million - both measures slightly above market expectations.

Deutsche Boerse (DB1.DE) reported Q3 results yesterday after the close of the European session. German exchange operator generated net revenue of €837.9 million, up 18% YoY (exp. €837.8 million). EBITDA increased 25% YoY, to €499.5 million (exp. €498 million), while net income was 33% YoY higher at €312.9 million. Deutsche Boerse maintained its full-year outlook and still expects full-year EBITDA to reach around €2 billion and net sales to reach around €3.5 billion.

RWE (RWE.DE) plans to spend around €20.6 billion (15 billion GBP) on renewable energy technologies and infrastructure in the United Kingdom by 2030. Investment amount includes projects that are currently underway.

Deutsche Boerse (DB1.DE) is trading slightly lower, following the release of a Q3 earnings report. Share price of the company broke above the resistance zone marked with 50% retracement of the downward move launched in mid-2020 yesterday but bulls struggle to extend gains today. Stock trades in the area marked with local peaks from April and June 2021 and one cannot rule out a reversal from those levels. Source: xStation5