DE30 climbs above short-term downward trendline

• Stocks in Europe trade higher

• DE30 breaks above the upper limit of market geometry and downward trendline

• TeamViewer slumped 25% after guidance cut

Stock markets in Europe are trading higher during the first half of the cash session today. Blue chips indices from the Western Europe trade around 1% higher on the day. Spanish IBEX (SPA35) is the outperformer gaining around 1.6% at press time. Among today's laggards one can find Polish WIG20 (W20) as it is trading 0.3% lower.

German industrial production data for August was released today at 7:00 am BST and just like August's factory orders data yesterday, missed expectations by a huge margin. German production dropped in August by 4.0% MoM while the market expected a drop of 0.5% MoM. On a year-over-year basis industrial production increased 1.7% (exp. 5% YoY). However, no market reaction to this disappointing data piece. The reason is that recent positive news on the US debt ceiling or Russian natural gas supply seem to outweigh negative data surprises.

Source: xStation5

DE30 reached the lowest level since end-Q1 2021 yesterday. However, moods began to improve later on and the drop was erased. A look at the DE30 chart of H1 interval shows that the index has managed to climb above both the upper limit of a local market geometry as well as the downward trendline. In theory, it hints at a reversal of short-term trend and heralds a larger upward move. Nevertheless, upward move slowed this morning when price reached the resistance zone marked with the 38.2% retracement of a recent correction (15,150 pts area). Should we see a break above this zone in the later part of the day, the next target for bulls will be an area near 50% retracement that is also marked with previous price reactions. Slightly above the 50% retracement, a 200-hour moving average (purple line) can be found.

Company News

TeamViewer (TMV.DE) was the star of yesterday's stock market session in Germany. However, reasons behind it were unlikely to have been well received by the company's shareholders. TeamViewer decided to cut its guidance triggering a massive 25% slump in share price! Company said that it expects full-year adjusted EBITDA margin to come in at 44-46%, down from a previous forecast of 49-51%. Billings are expected at €535-555 million, previously €585-605 million, while revenue is expected to reach €495-505 million, down from €525-540 million.

Vehicle sales of BMW Group (BMW.DE) dropped 12% year-over-year in Q3 2021, to 593,189 units. Sales of electric vehicles and plug-in hybrids jumped 43% YoY in Q3 2021, to 78,333 units. While drop in overall sales is certainly not a positive, BMW still expects to hit full-year targets in 2021 and achieve solid growth. Just like its rival Daimler, BMW has also said that it cannot be ruled out to semiconductor shortage will remain an issue in the coming quarters.

DAX top gainers and laggards at 10:12 am BST. Source: Bloomberg