DE30 climbs back above 14,000 pts zone

• European indices trade higher

• DE30 climbs back above 14,000 pts

• Deutsche Boerse gains after Q1 earnings

European stock market indices are trading higher on Tuesday. Indices from the Old Continent caught a bid following a solid session on Wall Street yesterday and in Asia today. German DAX (DE30) and Dutch AEX (NED25) are one of the best performing European indices today, trading over 1% higher at press time.

Source: xStation5

DE30 took a hit yesterday along with other European markets. However, decline was halted in the 13,900 pts area and the index started to recover yesterday in the evening. Bulls managed to push the index back above the psychological 14,000 pts level and upward move continued until the price reached a resistance zone ranging between 200-hour moving average (purple line) and 14,200 pts handle. A brief pullback occurred during the European morning trade today but it was halted in the 14,050 pts area. Note that this zone is marked not only with previous price reactions but also with the lower limit of a local market geometry. A positive reaction to this hurdle signals that resumption of the upward move remains possible with the aforementioned 14,200 pts zone being the first resistance to watch.

Company News

Deutsche Boerse (DB1.DE) reported a 24% YoY jump in Q1 net revenue, to €1.06 billion (exp. €1.05 billion), while EBITDA was 32% YoY higher at €687.4 million (exp €628.3 million). Net income increased 33% YOY to €420.8 million. Company said that it now expects full-year 2022 EBITDA to come in "above €2.2 billion" compared to previous "around €2.2 billion" forecast. Net revenue is seen coming in "above €3.8 billion", up from previous guidance of "around €3.8 billion".

Volkswagen (VOW1.DE) said that it has begun to gradually resume production at its factory in Shanghai, China that was closed since the beginning of April due to a lockdown imposed in the city.

According to a Deutsche Welle report, Rheinmetall (RHM.DE) filed an application to the German government last week to supply Ukraine with 88 used Leopard 1A5 tanks, worth around €115 million. The German federal security council is expected to review applications for exports of heavy weapons to Ukraine soon.

Daniel Grieder, CEO of Hugo Boss (BOSS.DE), said in an interview with Handelsblatt that he sees no reason to adjust growth goals due to Russia-Ukraine war as he is confident his company can make up shortfalls in other markets, like Asia or the United States. Grieder also said that pre-orders for the Fall 2022 collection are 40% higher than in the previous year.

Analysts' actions

• Gerresheimer (GXI.DE) upgraded to "outperform" at Oddo BHF. Price target set at €101.00

Deutsche Boerse (DB1.DE) is trading higher following the release of Q1 2022 earnings and forecast upgrade. Stock tested the €170 resistance zone today, marked with post-pandemic highs, but failed to break above. Nevertheless, the zone remains within striking distance and another attempt cannot be ruled out. The nearest support in case of a pullback can be found in the €160 area, slightly below the upper limit of the previously broken upward channel. Source: xStation5