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European equities recover at the beginning of a new week
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DE30 bounces off the lower limit of the Overbalance structure
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Siemens Healthineers (SHL.DE) slumps after reporting profit miss
Stocks in Europe launched a new week higher. Gains can be spotted in most of the Western European countries with UK, Italy and Germany being in the lead. Austrian and Portuguese equities underperform the most. Final European PMIs for January were released throughout the evening but no major deviations from flash results could be spotted.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 painted a new YTD low on Friday and reached the lower limit of the Overbalance structure (purple box), matching the size of a downward correction from early-October 2019. The index failed to break below it and an upward correction is being delivered today. The first level to watch in case it continues can be found at 13150 pts. This level is marked by previous price reactions, 50-hour moving average (green line) and the upper limit of the local market geometry (yellow boxes).
DAX members at 9:08 am GMT. Source: Bloomberg
Siemens Healthineers (SHL.DE) reported earnings for fiscal Q1 2010 (calendar Q4 2019). Revenue of the German company increased to €3.59 billion (+8.7% YoY). Operating profit dropped 11% to €484 million, below analysts forecasts. While EBIT increased in Advanced Therapies unit by 12%, a slump of 58% was registered at Diagnostics unit. However, the company confirmed full-2020 outlook and expects organic revenue growth to reach 5-6% and basic EPS 6-12% above EPS for 2019.
HeidelbergCement (HEI.DE) named Dominik Von Achten as a new Chief Executive Officer. Von Achten served as Deputy CEO since 2015. Previous CEO, Bernd Scheifele, retired on January 31.
Roundup trial in California was put on hold as Bayer (BAYN.DE) is engaged in settlement talks.
Analyst actions
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Bayer (BAYN.DE) raised to “neutral” at Bryan Garnier. Price target set at €67
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Deutsche Bank maintained a “hold” rating on E.ON (EOAN.DE). Price target was raised to €10.50
Shares of Siemens Healthineers (SHL.DE) make the biggest dive since trading debut in 2018. The stock tested support zone ranging below €39 handle in response to profit miss. However, recovery started later on. Should the share price continue to rise, the stock may test the near-term resistance at €42. Source: xStation5
