DE30 reaches 3-week high above 15,700 pts

• European stock markets trade higher

• DE30 breaks above 15,700 pts

• Bayer announced a $2 billion acquisition

European stock markets trade higher on Thursday. Indices from Spain and Portugal are European top performers today while Polish WIG20 (W20) is the only blue chips index to trade lower. Bank of England decision scheduled for 12:00 pm BST is the main macro event of the day. However, it is unlikely that it will trigger major moves on the market.

DE30 has finally managed to break above the 15,675 pts resistance zone. The index trades at the highest level since July 15, 2021. Breaking above the aforementioned zone paved the way for a test of the all-time highs in 15,800 pts area in near-term. Potential range of a breakout from the 15,475-15,675 pts trading range is 200 points, signalling that a move towards fresh record highs could be on the cards. SourcE: xStation5

Bayer (BAYN.DE) announced it will acquire US biotech company, Vividion Therapeutics, for $2 billion. A $1.5 billion upfront payment will be made and the remaining $500 million will be conditioned on meeting milestones. Bayer expects acquisition to boost its drug pipeline as patents for its key products are nearing expiry. While Q2 EBITDA dropped 10.6% year-over-year to €2.58 billion, sales were 12.9% YoY higher at €10.85 billion. EBITDA was lower than expected while sales beat market consensus. Bayer boosted full-year outlook and expects 2021 sales to reach €43 billion, up from previous forecast of €41 billion.

Adidas (ADS.DE) reported Q2 operating profit at €543 million (exp. €440.7 million) and total revenue at €5.08 billion (exp. €4.86 billion). Company managed to beat sales expectations in almost all regions. The only region that missed the estimate was Greater China where sales reached €1.00 billion, compared to a €1.13 billion forecast. Total net profit from continuing operations came in at €387 million (exp. €299 million). Adidas boosted full-year forecasts and now expects net income to come in at €1.4-1.5 billion, up from previous €1.25-1.45 billion range. Sales at constant FX rates are expected to grow by up to 20% this year.

Deutsche Post (DPW.DE) reported a 22% YOY higher revenue in Q2 2021, at €19.47 billion (exp. €19.06 billion). Ebit more than doubled year-over-year to €2.08 billion (exp. €1.92 billion). Net income reached €1.29 billion. Deutsche Post left its full-year forecast unchanged and still expects EBIT to exceed €7 billion. CEO of the company said that inflation is not a concern as Deutsche Post will pass higher costs onto customers.

Bayer (BAYN.DE) plunged today following the release of the earnings report. Poor performance of Bayer's CropScience unit is weighing on the share price. Company is the worst performing DAX member and trades more than 5% lower today. Stock dropped below the lower limit of the downward channel and tested support zone ranging around €46.50 mark. Source: xStation5