DE30 breaks above 14,500 pts

• European indices trade mostly higher

• DE30 breaks above 14,500 pts

• Sartorius jumps after Q1 earnings

European stock market indices trade mostly higher on Thursday. Blue chips indices from Germany, France and Austria trade over 1% higher. Meanwhile, UK FTSE 100 (UK100) and Italian FTSE MIB (ITA40) can be seen as top laggards, dropping 0.1% each. While the economic calendar for today lacks top-tier macro releases, some action may take place in the evening during the IMF debate on global economy as Fed Chair Powell and ECB President Lagarde are both expected to participate.

Source: xStation5

DE30 continues a recovery move launched following a break above the downward trendline and the upper limit of a local market geometry. Index trades almost 5% above a low from April 12, 2022. DE30 managed to break above the 14,500 pts swing level today and is trading at the highest level since April 5, 2022. A key near-term resistance to watch can be found in the 14,600 pts area and is marked with previous price reaction. In case bulls fail to break above, a pullback towards two nearest support zones - 14,500 and 14,320 pts - cannot be ruled out.

Company News

Sartorius (SRT.DE) reported quarterly results for January-March period of 2022. Sales increased 30% YoY to €1.02 billion (exp. €0.96 billion) while adjusted EBITDA increased 32% YoY to €349 million (exp. €320 million). Adjusted EBITDA margin improved from 33.3 to 34.1% YoY. Adjusted net income reached €152.6 million (exp. €152.6 million). Sartorius still expects full-year sales to increase 15-19% and full-year adjusted EBITDA margin at 34%.

Continental (CON.DE) reported preliminary Q1 2022 results today. Company said that revenue reached €9.3 billion according to preliminary data, above the €8.8 billion expected. Adjusted EBIT margin was reported at 4.7%. Company decided to adjust full-year forecasts to reflect negative effects of cost inflation and supply chain disruptions. Continental now expects full-year adjusted EBIT margin at 4.7-5.7%, down from 5.5-6.5%. 2022 sales are expected to come in at €38-40 billion (2021: €33.77 billion).

Analysts' actions

• ThyssenKrupp (TKA.DE) rated "buy" at Jefferies. Price target set at €12.65

Sartorius (SRT.DE) jumped today, following the release of solid Q1 earnings. Stock jumped above a short-term swing level in the €337.50 area. However, the upward move was halted for now by the 200-hour moving average in the €342.00 area (purple line). In case bulls manage to clear this obstacle, the next resistance to watch can be found ranging around the 38.2% retracement of the downward move launched in late-January 2022 (€351.00 area). Source: xStation5