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European markets trade higher on Monday
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DE30 approaches 13,600 pts
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Siemens Healthineers (SHL.DE) confirms preliminary results
European stock market indices are trading higher at the beginning of a new week. Mining stocks are among European outperformers today following a surge in silver prices. Upbeat moods can be seen all across the Old Continent with Dutch, German and Belgian indices being top movers. Blue-chips indices from Italy, Spain and UK are top laggard but even in these cases we are observing 0.5-0.6% price gains.
German retail sales data released at 7:00 am GMT showed a plunge of 9.6% MoM in December. This was a massive miss as the market expected a drop of 2.6% MoM. Report highlights the impact of new coronavirus restrictions that were imposed in Germany in late-2020.
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Source: xStation5
DE30 is recovering from last week's decline today. The index bounced off the lower limit of the Overbalance structure at 13,400 pts and moved towards the resistance at 13,600 pts. An attempt to break above this hurdle has been stopped by the 33-period EMA and the index trimmed part of today's gains. Failure to jump above the 13,600 pts zone may hint at another leg lower in the current downtrend coming. In such a scenario, traders should focus on the aforementioned lower limit of the Overbalance structure. Economic calendar for the remainder part of the day is nearly empty therefore some muted 13,400-13,600 pts range trading may be on the cards today.
Company News
Siemens Healthineers (SHL.DE) confirmed preliminary Q4 results released last week. Additionally, the company said that its free cash flow increased from €244 million in Q4 2019 to €668 million in Q4 2020. Net income increased 44% YoY to €437 million. Siemens Healthineers said that strong demand for its rapid antigen coronavirus test was a driver of good results and that strong demand for the product will continue in 2021. It expects full-year revenue from antigen test to come in at €300-350 million, up from €100 million expected earlier.
CEO of Thyssenkrupp (TKA.DE) said that the company has managed to avoid the usual early-year decline in free cash flow. ThyssenKrupp has also already cut 4,000 jobs out of planned 11,000.
Bayer (BAYN.DE) agreed to help CureVac with coronavirus vaccine manufacturing. Company plans to produce 161 million doses of vaccine in 2022.
Siemens Healthineers (SHL.DE) continues upward move following confirmation of preliminary Q4 results. The stock is testing an all-time high at €47.25 today. Should we see a break above it, the next resistance to watch can be found at 127.2% exterior retracement of a correction started in late-May 2020 (€50.40 area). Source: xStation5
