DE30 pulls back after failed attack on 50% retracement

• European markets trade mixed

• DE30 pulls back after failed attack on 50% retracement

• Delivery Hero, Deutsche Boerse and Siemens reported earnings

In spite of an upbeat trading on Wall Street yesterday and in Asia today, European stock markets are trading mixed on Thursday. Major indices from Italy, Spain and Belgium gain while benchmarks from the Netherlands, Russia, Poland and France drop. UK and German equities trade little changed. Traders should beware of a potential jump in volatility in the early afternoon when US CPI data is released (1:30 pm GMT), especially if the report shows bigger than expected acceleration.

Source: xStation5

DE30 reached the lower limit of the previously broken upward channel. Index struggled with breaking above the hurdle and has experienced a quick reversal after reaching the resistance zone marked with the 50% retracement of the downward move started at the beginning of January. A near-term support zone can be found in the 15,380 pts area and is marked with 50- and 200-hour moving averages as well as 38.2% retracement. 

Company News

Delivery Hero (DHER.DE) reported full-2021 results today. Company reported gross merchandising volume at €35.4 billion in full-2021, above its own guidance of €33-35 billion. Orders jumped 57% YoY to 3 billion.Total segment revenue increased 89% YoY to €6.6 billion (guidance: €6.4-6.7 billion) while adjusted EBITDA margin reached -2.2%, up from -2.7% a year ago. Company expects revenue to increase to €9.5-10.5 billion with adjusted EBITDA margin improving to negative 1.0-1.2%.

Siemens (SIE.DE) reported results for fiscal-Q1 2022 (calendar Q4 2021). The German company generated €16.497 billion in revenue, up 17% YoY. Orders jumped 52% YoY to €24.209 billion. Net income was 20% YoY higher at €1.796 billion with EPS coming in at €2.05, up from €1.72 a year ago. Order backlog increased to €93 billion. Siemens also agreed to sell its logistics business to Koerber for €1.15 billion. Sale is expected to be completed this year. 

Deutsche Boerse (DB1.DE) reported a 23% YoY jump in Q4 net profit, to €281.2 million, slightly better than expected. Company said that it expects 2022 net revenue to reach €3.8 billion while EBITDA should reach around €2.2 billion.

Analysts' actions

• Hannover Re (HNR.DE) rated "buy" at Goldman Sachs. Price target set at €220.00

• Munich Re (MUV2.DE) rated "buy" at Goldman Sachs. Price target set at €325.00

While Delivery Hero (DHER.DE) managed to improve its results in 2021, investors are disappointed that the company still expects to generate losses on a full-year basis in 2022. Stock is plunges over 20% today and trades at the lowest level since December 2019, erasing all of the pandemic gains. Source: xStation5