DE30 reaches 6-week high near 15,750 pts

• European markets trade higher

• DE30 reaches 6-week high near 15,750 pts

• Earnings from Symrise, Kion Group and Evotec

Stocks in Europe are trading higher on Tuesday benefitting from upbeat moods seen on the US stock exchanges yesterday. Solid performance of US equities was supported by strong earnings and the same reason seems to be pushing European indices higher today. Indices from Germany and Spain are today's top performers from the Old Continent while Portuguese and Russian equities lag.

Source: xStation5

DE30 has managed to make a more decisive break above the resistance zone marked with the 61.8% retracement of a recent downward correction. Index benefits from an upbeat sentiment seen on the US stock markets yesterday as well as upbeat earnings released by European companies today. Index is trading around 1% higher on the day and is currently testing the resistance zone marked with the 78.6% retracement in the 15,750 pts area. Note that by reaching this area, the index has realized the range of the upside breakout from the recent trading range stretching between 50% and 61.8% retracements. In case a break above the aforementioned resistance zone near 78.6% retracement, upward move may extend towards the 15,950 pts swing area, that can be found just a touch below all-time highs. As there are no top-tier data releases scheduled for the European morning today, DE30 may become more volatile in the evening when big US companies like Microsoft or Alphabet release earnings.

Company News

Symrise (SY1.DE) reported Q1-Q3 2021 revenue at €2.88 billion, up 6.7% year-over-year. Organic revenue growth reached 9.2% year-over-year. Company maintained its full-year EBITDA margin forecast and still expects it to exceed 21%. However, the full-year organic revenue growth forecast was boosted to 9%, up from a previous forecast of 7%. Medium-term forecasts were left unchanged and the company still expects to generate €5.5-6.0 billion in revenue in the 2025 financial year.

Kion Group (KGX.DE) reported Q3 revenue at €2.57 billion, up 24% year-over-year (exp. €2.53 billion). Adjusted EBIT increased 44% YoY, to €228.9 million (exp. €212.8 million) with adjusted EBIT margin reaching 8.9% YoY (exp. 7.7% YoY). German materials handling equipment manufacturer booked €3.11 billion in orders during the July-September quarter. Kion Group confirmed full-year forecasts and still expects sales of €9.7-10.3 billion and adjusted EBIT of €810-890 million.

Evotec (EVT.DE) announced preliminary results for Q1-Q3 2021 period. Company said that revenue during the period reached €425-435 million while adjusted EBITDA reached €68-72 million. Company had sales of €360.4 million in Q1-Q3 2020 and adjusted EBITDA of €76.9 million.

Symrise (SY1.DE) launched today's trading higher but the advance was halted at the 50-session moving average (green line). Nevertheless, the recovery move does not seem to be at risk just yet. Should we see a break back below the zone at €111.50, marked with 50% retracement of recent upward impulse and 200-session moving average (purple line), pressure on share price may increase. However, key support is located near the 78.6% retracement (€102 area), where the lower limit of market geometry can be found. Source: xStation5