DE30: Mixed moods during European morning session

• European stocks trade mixed

• DE30 pulls back after failed test of 200-session moving average

• Delivery Hero exits German food delivery business

European stock market indices trade mixed on Wednesday after a volatile start of the week. Major indices from the Old Continent managed to erase declines from Monday and are now trading more or less flat week-to-date. Blue chips equities from Germany, France, the Netherlands and Spain post minor gains while indices from the United Kingdom, Italy, Austria and Belgium pull back slightly. Economic calendar for today lacks major releases for stock traders. US GDP report scheduled for 1:30 pm GMT will be a third release and should not have a major impact on the markets.

Source: xStation5

DE30 bounced off an important support zone at the beginning of this week. The area ranging below the 23.6% retracement of the upward impulse launched in November 2020 is also marked with the lower limit of local market geometry. The index failed to break above the 150,70 pts price zone for the second time this month. Moreover, a bullish candlestick pattern was painted on Monday, boosting chances for a recovery. DE30 gained and tested 200-session moving average (purple line) but failed to break above. In case bulls manage to deliver a break above this hurdle, local peak at 15,820 pts will become the next target. This is the neckline of a double bottom pattern and a break above could trigger a move to fresh all-time highs.

Company News

Delivery Hero (DHER.DE) announced a big reversal in its strategy. Company will exit the German food delivery business after 7 months since relaunching operations. Delivery Hero will also divest its operations in Japan. Company decided to exit those markets after competition turned out to be too fierce. Market welcomed that decision as rational and shares of the company spiked on the news.

Deutsche Telekom (DTE.DE) chose Deloitte as its new auditor. Deloitte will replace EY as the company's auditor. The decision comes in the aftermath of the scandal involving Wirecard, a collapsed payments company who had EY as auditor. 

Analysts' actions

• Brenntag (BNR.DE) upgraded to "add" at Baader Helvea. Price target set at €85.00

• Aroundtown (AT1.DE) rated "underweight" at Barclays. Price target set at €5.00

Share price of Delivery Hero (DHER.DE) jumped after news of the company exiting the German delivery business. Stock bounced off the mid-term support zone at €90.00. The nearest resistance to watch can be found in the €104.00 area and is marked with the 38.2% retracement of a recent drop. Source: xStation5