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European markets trade higher for third consecutive day
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DE30 failed to break above 13,980 pts resistance
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Siemens boosted full-year outlook
Global stock markets continue to advance as stimulus talks in the United States gather pace. European indices rise for the third consecutive day and German DAX futures rallied to as high as 13,980 pts at the start of European cash trading. Gains were trimmed later on but indices from the Old Continent continue to trade ahead of Tuesday's closing prices.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appA strong upward move on DE30, that occurred on Monday and Tuesday, has slowed today. The index broke above the 13,880 pts resistance during Asian trading. Advance was halted at the resistance zone ranging above 13,980 pts at the beginning of the European cash session as bulls were unable to break above. Subsequent pullback resulted in a retest of the aforementioned 13,880 pts zone. As the index recovered back above the lower limit of short-term 1:1 structure, it looks like pullback was just a brief correction following steep gains earlier today and another test of the 13,980 pts zone may be looming. ADP data at 1:15 pm GMT is a key release of the day and may result in elevated volatility.
Company News
Siemens (SIE.DE) released results for fiscal-Q1 2021 (calendar Q4 2020). Company reported a 30.7% YoY drop in sales, to €14.07 billion (exp. €13.49 billion). Net income at €1.36 billion was 10.5% YoY higher (exp. €1.01 billion) while adjusted EPS at €1.68 was 12.6% YoY higher (exp. €1.19). Digital industries business was the main driver of solid earnings. Siemens said that orders increased from €14.36 billion to €15.94 billion. Company boosted guidance for fiscal-2021 (ending September 30, 2021) and now expects revenue growth of mid- to high-single digits. Net income for the year is seen at €5-5.5 billion.
According to a Bloomberg report, Daimler (DAI.DE) is nearing the decision to launch an IPO of its heavy-truck unit. The supervisory board of Daimler is expected to meet today to discuss the matter and IPO could take place in the second half of 2021. Using stock multiples for heavy-truck units of other automotive companies, Daimler's unit could be valued at around €29 billion.
DAX members at 10:09 am GMT. Source: Bloomberg
