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European stock markets decline
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DE30 swings up and down after opening
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Beiersdorf will be removed from DAX index
European indices are trading lower on Thursday but significantly above lows reached during the Asian session on the futures market. German DAX drops 0.7% while UK FTSE (UK100) and Dutch AEX (NED25) drop over 1%.
Powell's speech in the afternoon is the main market event of the day. In case the top US central banker continues to play down rising Treasury yields, pressure on the stock market may intensify.
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Source: xStation5
DE30 has managed to recover most of its overnight losses already. German index even managed to test a resistance zone marked by 78.6% retracement of February's correction at 14,060 pts. Nevertheless, DE30 failed to break above it and the price pulled back below the 50-hour moving average (green line). Index is testing short-term support at 61.8% retracement (13,975 pts). In case this support fails to halt sell-off, the way towards yesterday's lows near 50% retracement (13,900 pts will be left open). On the other hand, in case DE30 gets back on track and starts recovering, the resistance zone to watch is marked by the aforementioned 78.6% retracement.
DAX members 10:12 am GMT. Source: Bloomberg
Company News
Beiersdorf (BEI.DE) will be removed from DAX index, effective from March 22. The company will be replaced by Siemens Energy, a renewable energy company that has been spun-off from Siemens (SIE.DE) half a year ago. Siemens holds around 45% stake in Siemens Energy.
Henkel (HEN3.DE) expects organic revenue growth of 2-5% in 2021 and adjusted EBIT margin of 13.5-14.5%. Adjusted EPS is expected to grow 5-15%. Company's sales declined 4.3% in 2020, to €19.3 billion, while adjusted Ebit margin declined 2.6 percentage points, to 13.4%. Company proposed to payout a dividend of €1.83 per share, unchanged from the previous year.
Merck (MRK.DE) expects earnings to increase high single digit to low teens percentage in 2021. Company's adjusted earnings increased 19% to €5.2 billion in 2020. Upbeat forecast is backed by view that demand for Merck's pandemic-related products will continue this year.
Vonovia (VNA.DE) expects 2021 total segment revenue at €4.9-5.1 billion (€4.37 billion in 2020) and adjusted EBITDA at €1.98-2.03 billion (€1.91 billion in 2020). Funds from operations are expected at €1.42-1.47 billion, up from €1.35 billion in 2020. 2020 dividend per share has been proposed at €1.69, up from €1.57 a year ago.
Share price of Vonovia (VNA.DE) is trying to climb back above the resistance zone at €54.00. The zone is marked not only by the previous price reactions and pre-pandemic highs but also by the short-term downward trendline. Failure to break above could trigger a pullback towards the support at €52.50. On the other hand, in case we see a break above, €55.50 swing level is the next resistance in line. Source: xStation5
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