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European indices erase morning gains
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DE30 pulls back after failed test of 14,000 pts area
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Volkswagen gains after 2021 results
European stock market indices launched a new week higher on hopes that some kind of preliminary agreement between Russia and Ukraine can be reached soon. However, indices gave back part of the gains after comments from Russian President Putin showed that he does not plan to back down and aims to achieve goals of his military operation. Importantly, Putin denied reports saying that he has asked China for military equipment.
Economic calendar for today is empty so traders should focus on incoming newsflow. Meeting between the US National Security Advisor and top Chinese foregin policy officials is expected to be held and it may impact sentiment later on. Timing is unknown however. Apart from that, another round of Russia-Ukraine talks were held today and there weren't any comments on how it went yet.
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Source: xStation5
DE30 launched a new week higher, just like most of the European blue chips indices. Index even managed to test resistance zone ranging between 14,000 pts and 14,100 pts. Nevertheless, bulls failed to break above and a pullback was started. Big part of daily gains was erased but indices continue to trade higher compared to Friday's closing prices. The 13,800 pts area is the nearest support zone to watch in case pullback deepens.
Company News
Volkswagen reported a 75% YoY jump in after tax profit in 2021, to €15.43 billion. Operating profit almost doubled to €19.28 billion while sales were 12.2% YoY higher at €250.2 billion (exp. €246.5 billion). The German carmaker increased its dividend per share from €4.80 to €7.50. Company ascribed higher sales and profits to more favorable pricing that managed to offset production loss from semiconductor shortage. Volkswagen expected 2022 revenue to be 8-13% higher.
Deutsche Bank (DBK.DE) decided to completely wind down its business in Russia following public backlash over its previous decision to keep some operations in the country running.
Shares of Volkswagen (VOW1.DE) broke below the lower limit of the downward channel following launch of Russian invasion of Ukraine and realized range of the breakout. Declines were halted in the €180 area and stock launched a recovery move later on. Shares gain today on solid 2021 results and are testing resistance marked with 23.6% retracement of a recent large downward impulse (€219.50). Source: xStation5
