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Stocks in Europe trade mixed
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DE30 pulls back below downward trendline
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Airbus receives order for 30 narrowbody aircraft from Delta Air
Stocks in Europe are trading mixed on Wednesday. Equities in Germany, Italy, Russia, Switzerland and Poland trade lower while stocks in UK, Spain, France and the Netherlands gain. Pre-Jackson Hole uncertainty combined with lack of other catalysts is contributing to a calm trading on the markets and absence of larger price swings.
German Ifo index was released at 9:00 am BST. Business climate subindex came in a 99.4, down from previous 100.7 (exp. 100.4). Current conditions subindex came in at 101.4, up from previous 100.4 (exp. 100.8). Report was mixed but given rather small deviations from expectations, it caused almost no reaction on the markets. Ifo Institute economists said in a note that around 70% of companies struggle with supply chain disruptions and around half of manufacturing companies want to pass higher costs onto customers.
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Source: xStation5
DE30 halted yesterday's pullback at the 200-hour moving average and made another attempt of breaking above the downward trendline later on. While it seemed that bulls may succeed this time, they have failed to maintain the move and the index pulled back below the trendline. Key near-term support is the aforementioned 200-hour moving average (purple line, 15,870 pts area). It has managed to halt downward moves a few times already and a break below could create a bearish bias in the markets. Price zone at 15,850 pts is the next support in line. On the other hand, breaking above the downward trendline would pave the way for a test of 15,950 pts swing area.
Company News
Siemens (SIE.DE) signed a memorandum of understanding with state-owned Egyptian Electricity Holding. Two companies teamed up to develop hydrogen-based industry in Egypt, including a pilot facility with capacity of 100-200 MW.
Airbus (AIR.DE) received an order for 30 A321neo airplanes from Delta Air.
Aroundtown (AT1.DE) reported first-half results today. German real estate company reported an almost 10% YOY drop in adjusted EBITDA, to €452 million. Net rental income dropped from €502 million in H1 2020 to €458 million in H1 2021. Net profit in the January-June period reached €362 million, or €0.25 per share. Funds from operations (FFO) stood at €172 million, down from €234 million in H1 2020. FFO per share dropped from €0.17 to €0.15. Company confirmed full-year guidance.
Shares of Airbus (AIR.DE) are recovering from a recent correction. Stock is trading over 1% higher today and tests the resistance zone at €115.00. If it succeeds with breaking above it, a way towards post pandemic highs above €120 will be left open. The major support to watch in case pullback resumes can be found at 61.8% retracement of pandemic drop (€104.00). Source: xStation5
