DE30 tests 200-hour moving average in 15,650 pts area

• European markets trade lower

• DE30 drops below lower limit of market geometry and tests 200-hour moving average

• Siemens Energy slumps on profit warning

European stock markets trade lower on Thursday, following a mixed performance of equities during the Asian trading hours. German DAX (DE30), Spanish IBEX (SPA35) and Italian FtSE MIB (ITA40) trade over 0.7% lower. Swedish blue chips index is the only one in Europe to post minor gains today. Economic calendar for today is light. Investors will be offered some readings from the United States, like jobless claims (1:30 pm BST) or industrial production (2:15 pm BST), but those rarely have a major impact on the market. Powell will arrive in Congress for the second day of semiannual testimony today. However, yesterday's speech from Fed Chair was non-event and today's testimony is likely to be the same.

Source: xStation5

It looks like bulls were unable to defend the 15,750 pts support on DE30. The German index took a dive at the beginning of today's cash trading and tested 200-hour moving average in the 15,650 pts area (purple line). Index tried to recover later on but failed to climb back above the 15,675 pts price zone. A point to note is that DE30 broke below the lower limit of the Overbalance structure, signalling a reversal of short-term trend. Near-term support levels to watch in case declines deepen can be found at 15,615 pts and 15,520 pts. Economic calendar is light today and there are no events scheduled that could have a major impact on equities. Second day of Powell's testimony in Congress is expected to be a non-event.

Company News

Daimler (DAI.DE) released preliminary EBIT results for the second quarter of 2021 and those turned out to be much better than expected. Earnings before interest and taxes reached €5.19 billion in Q2 2021, while the market expected €3.91 billion). Adjusted return on sales in the Mercedes-Benz Cars & Vans unit stood at 12.8% while adjusted return on sales in the Trucks & Buses unit stood at 8.3%. Company managed to offset limited availability of semiconductors with price increases. Daimler will publish full Q2 2021 results on July 21.

Shares of Siemens Energy (ENR.DE) slump today and the company is the worst performing member of DAX index. Siemens Energy announced that due to increase in prices of raw materials it is unlikely that the company will hit the lower end of its 3-5% margin guidance for 2021.

Draegerwerk (DRW8.DE) is trading over 5% lower today. Company released preliminary EBIT figures for Q2 2021. EBIT was reported to be around €80 million on net sales of around €841 million. According to preliminary data, Q2 orders stood at €738 million. Company confirmed a full-year EBIT margin forecast of 8-11%. Manufacturer of breathing equipment said that it expects pandemic-related demand to stabilize in the second half of 2021 and does not expect comparable demand in the following years.

Siemens Energy (ENR.DE) trades around 10% lower today following profit warning. Stock plunged below the lower limit of recent trading range, stretching between 50% and 61.8% retracement of the upward move launched in late-2020. Bulls managed to push the stock off the daily lows but finished the day below 61.8% retracement may leave a bearish bias. Source: xStation5