-
European indices trade little changed
-
DE30 tries to climb back above 13,800 pts support
-
Earnings from Deutsche Bank and Commerzbank
European stock market indices are trading little changed on Wednesday, following yesterday's declines. Halt of Russian natural gas supply to Poland and Bulgaria is a big topic in Europe today. Should such a halt be made to exports to a big and highly dependent European economy, like for example Germany, it could have a significant impact on market moods and economy as well. This is a story to watch in the coming days.
Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appGerman DAX (DE30) launched today's European cash session flat and struggled to deliver a bigger move in either direction later on. Index took a hit yesterday and plunged below the support zone marked with 50% retracement of the upward move launched after US presidential elections in November 2020 (13,800 pts). An attempt of returning above this hurdle can be spotted today but so far bulls did not manage to do so. If sellers regain control again, a drop towards the next major support zone, ranging between 13,150 pts and 61.8% retracement, cannot be ruled out.
Company News
Deutsche Bank (DBK.DE) reported Q1 2022 results today ahead of session open. Lender generated net revenue of €7.33 billion (exp. €7.02 billion), driven by strong investment banking sales (€3.32 billion vs €2.97 billion expected). Fixed income trading revenue reached €2.84 billion (€2.48 billion). Net interest income jumped 2.7% YoY, to €2.88 billion. Pre-tax profit came in at €1.66 billion (exp. €1.70 billion).
BASF (BAS.DE) said that it will wind down the majority of its remaining activities in Russia and Belarus at the beginning of July 2022. The German company said that food-related businesses will be exempt from the decision. Belarus and Russia accounted for around 1% of BASF sales in 2021.
Court in London allowed Airbus (AIR.DE) to cancel an order for A321neo aircraft placed by Qatar Airways. Airbus decided to cancel the order amid a row with the Qatari airline but Qatar Airways sued the decision and wanted a judge to prevent Airbus from order termination. Ruling will allow European planemaker to award production slots booked for Qatar Airways to other customers.
Commerzbank (CBK.DE) reported preliminary Q1 2022 earnings. Revenue came in at €2.80 billion (exp. €2.25 billion) with operating profit reaching €544 million (exp. €324.6 million). Net interest income at €1.40 billion was also higher than €1.25 billion expected. Company confirmed full-year financial targets.
Analysts' actions
-
Hugo Boss (BOSS.DE) downgraded to "add" at Baader Helvea. Price target set at €56.00
-
Evotec (EVT.DE) upgraded to "buy" at FMR Frankfurt Main. Price target set at €39.00
In spite of reporting better-than-expected results and boosting 2022 investment banking outlook, shares of Deutsche Bank (DBK.DE) trade lower today. Stock is trading over 5% lower today and is the worst performing member of the DAX index. Taking a look at the chart, we can see that price broke below 38.2 and 23.6% retracements of February drop and the next potential support is marked with local lows in the €8.20 area. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
