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European markets trade mixed
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DE30 climbs back above 15,750 pts
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Hugo Boss rallies after preliminary Q2 results
European stock markets are trading mixed on Wednesday. Major indices from the United Kingdom, Germany and Spain trade lower while stock benchmarks from the Netherlands, Italy and Poland gain. Russian equities are top laggards with major indices from the country dropping over 1%.
There are quite a few events scheduled in today's economic calendar. However, the one that is likely to have the biggest impact on the markets is Powell's semi-annual testimony in Congress (5:00 pm BST).
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Source: xStation5
DE30 failed to reapproach 15,800 pts area yesterday. However, the index also managed to stay above the short-term support at 15,750 pts. This support area has been breached today but DE30 found support at the 50-hour moving average (green line) and climbed back above 15,750 pts handle. The aforementioned 15,800 pts area remains a near-term resistance to watch. Traders should be aware that volatility may jump around Powell's testimony at 5:00 pm BST. While the Fed Chairman will read a prepared text, testimony also includes questions from lawmakers. Market will be mostly focused on questions related to inflation.
Company News
Volkswagen (VOW1.DE) announced that it plans to spend €73 billion on development of new technologies in the 2021-2025, amounting to a half of all investments planned by Volkswagen in that period. German carmaker wants half of its sales to be electric vehicles by 2030 and almost all of the new vehicles sold in major markets by 2040 to be EVs.
In other news, it was reported that Dutch court ruled that owners of Volkswagen cars are entitled to receive a compensation of €3,000 per vehicle for the Dieselgate scandal.
Hugo Boss (BOSS.DE) released preliminary results for Q2 2021. Sales increased 129% YoY, to €629 million, while EBIT reached €42 million, compared to €250 million loss in Q2 2020. Preliminary figures topped market expectations. Moreover, Hugo Boss said that it expects sales to grow 30-35% in full-2021 and EBIT of €125-175 million. Full Q2 results will be released on August 4.
Hugo Boss (BOSS.DE) rallied following the release of preliminary figures and full-year forecasts. Stock is trading at a 22-month high! Near-term resistance zone to watch can be found in €54.70 area. It is marked with the 127.2% exterior retracement of the 2020 coronavirus drop as well as local highs from Q3 2019. Source: xStation5
