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European markets trade higher
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DE30 tests 15,800 pts area
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Earnings from Puma and Deutsche Telefonica
European stock market indices are trading slightly higher on Wednesday. Markets have to a large extent ignore new sanctions levied upon Russia by Western countries. World is now waiting for what comes next - will Russia push further into Ukraine's territory or will it be the end for now (as it was in 2014). Equities in Europe regain part of recent losses but continue to trade lower compared to close of last week.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 realized range of the downside breakout from a recent trading range (orange boxes). Drop was halted near the 15,300 pts handle and the upward move was launched. German index has already managed to climb above the 23.6% retracement of a downward move launched at the beginning of 2022. The next resistance to watch can be found at 38.6% retracement in the 15,070 pts area and coincides with the lower limit of the earlier-broken trading range. In case we see a break above this hurdle, attention will shift to the 15,195 pts area, where the upper limit of a local market geometry can be found.
Company News
Puma (PUM.DE) reported a 16.2% YoY jump in Q4 2021 revenue, to €1.767 billion. Full-2021 sales were 30% higher than in 2020 and reached €6.805 billion. Operating profit reached €557 million. Company said that boycotts in China as well as rising costs weighed on results. Puma expects 2020 sales to grow at least 10% while operating profit is expected at €600-700 million.
Telefonica Deutschland (O2D.DE) reported an unexpected profit in Q4 2021. German telecom said that it has generated net profit of €67 million in the final quarter of 2021, up from €1 million profit in Q4 2020. Market expected a loss of €2 million. Sales increased from €2.02 to €2.06 billion while mobile-services revenue jumped from €1.36 to €1.39 billion. Company expects sales to grow in the low-single-digit percentage range in 2022.
Analysts' actions
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E.ON (EOAN.DE) downgraded to "neutral" at JPMorgan. Price target set at €12.00
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Fraport (FRA.DE) downgraded to "hold" at HSBC. Price target set at €71.00
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LEG Immobilien (LEG.DE) rated "outperform" at Oddo BHF. Price target set at €141.50
In spite of reporting an unexpected profit, shares of Telefonica Deutschland (O2D.DE) took a hit at the start of today's trading. Stock dropped below support zone at €2.49 and tested 200-session moving average (purple line). Bulls managed to defend this area and now an attempt of breaking back above the aforementioned €2.49 can be observed. Source: xStation5
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