DE30 keeps testing 16,000 pts area

• European stocks markets trade higher

• DE30 tests 16,000 pts area

• Earnings from Brenntag, Siemens Healthineers, HeidelbergCement and Deutsche Post

Stock markets in Europe are trading near or at records following yesterday's FOMC decision. Fed actions were in-line with expectations and central bank refrained from providing rate hike timing. Indices moved higher with German DE30 reaching 16,000 pts. However, the upward move was halted later on and now indices struggle to find more fuel for rally.

DE30 is testing all-time highs. The German index climbed to 16,000 pts yesterday following the FOMC decision on tapering but has struggled to move further since. Nevertheless as the index remains in the area and a break to fresh records cannot be ruled out, it would be prudent to look at potential resistance levels ahead. Fibonacci retracements offer a hint with 127.2% and 161.8% exterior retracements of recent correction being first potential resistance levels - 16,360 and 16,790 pts respectively. Source: xStation5

Brenntag (BNR.DE) reported a 30% YoY jump in Q3 operating EBITDA, to €342.9 million (exp. €338.9 million). Sales were also 30% YoY higher at €3.74 billion (exp. €3.43 billion). Operating gross profit increased 25% YoY to €862.3 million while EPS jumped from €0.76 to €1.02. Full-year operating EBITDA is expected at €1.21-1.32 billion, wider range than previous €1.26.1.31 billion. Brenntag expects that challenging market conditions will last into the next year.

Siemens Healthineers (SHL.DE) reported a 33% YoY increase in fiscal Q4 (calendar Q3) revenue, to €5.16 billion (exp. €5.04 billion). Adjusted EBIT jumped 26% YoY, to €793 million (exp. €893.4 million). Net income increased 7.9% YoY, to €466 million. Adjusted EPS reached €0.53, up from €0.48 a year ago. Dividend for the fiscal year was declared at €0.85 per share. Company expects organic sales growth of 0-2% in fiscal-2022 and adjusted EPS at €2.08-2.20.

Deutsche Post (DPW.DE) reported a 24% YoY jump in Q3 revenue, to €20.04 billion with freight revenue jumping over 50% YoY. EBIT increased 29% YoY, to €1.77 billion. The main Post and Parcel division saw a 6.3% YoY drop in EBIT, to €300 million. Freight emerged as the biggest driver of EBIT. Company expects full-year EBIT above €7.7 billion, up from a previous forecast of above €7 billion.

HeidelbergCement (HEI.DE) reported Q3 revenue at €5.06 billion, up 3.5% YoY and in-line with market expectations. Operating EBITDA dropped 11% YoY to €1.18 billion, slightly below €1.2 billion forecast. Company confirmed full-year growth forecasts and boosted return on invested capital (ROIC) forecast to above 9%, from above 8% earlier. 

HeidelbergCement (HEI.DE) is trading lower following the release of Q3 earnings. Stock is pulling back from the 50-session moving average (green line). The nearest support can be found at the 38.2% retracement of the post-pandemic recovery move near €61.10 area. This is the same area that has halted downward in mid-October. Source: xStation5