DE30 pulls back below 15,700 pts

• European markets trade mixed

• DE30 pulls back below 15,700 pts

• SAP drops after warning of negative FX impact

European stock markets are trading mixed today. Range of moves is rather small and it looks like investors are in wait-and-see mode ahead of today's FOMC policy announcement at 7:00 pm BST. Germany DAX (DE30) and Spanish IBEX (SPA35) trade lower, French CAC40 (FRA40), Italian FTSE MIB (ITA40) and UK FTSE 100 (UK100) trade flat while Dutch AEX (NED25) and Polish WIG20 (W20) gain.

Source: xStation5

German DAX (DE30) launched today's cash trading little change but has moved lower since. Index retested lows from Monday in the 15,680 pts area (38.2% retracement of the upward move launched on June 9. Future performance of the index will depend on whether bulls manage to defend the area. Should we see a rebound, the first near-term resistance to watch can be found at 15,720 pts swing level. On the other hand, failure to defend the area could see the index pullback towards the two lower retracements - 50% retracement at around 15,650 pts and 61.8% retracement in the 15,615 pts area. Traders should keep in mind that trading may be a bit muted throughout the day as investors await hints from the Federal Reserve. Volatility is expected to pick-up after 7:00 pm BST.

Company News

According to a DPA report, Volkswagen (VOW1.DE) is set to partially reduce production at its major plant in Wolfsburg from June 21 to June 25. The move follows similar decisions from other car manufacturers, like Daimler (DAI.DE) or Hyundai, and was triggered by the same issue - global chip shortage.

SAP (SAP.DE) said it expects a negative FX impact of 2-4 percentage points on full-year operating profit. Negative impact on cloud revenue may be as high as 3-5 percentage points. Company continues to expect full-year cloud revenue in the €9.2-9.5 billion range and operating profit in the €7.8-8.2 billion range.

Linde (LIN.DE) signed a memorandum of understanding with the South Korean Gyeonggi province. Linde will build hydrogen stations in South Korean cities as well as expand industrial gas facilities at a site in Pyeongtaek. Deal is worth $1.5 billion.

SAP (SAP.DE) painted a double top near €120.50 mark. Stock is pulling back today following warning of a negative FX impact on full-year earnings and profits. The nearest support can be found at 50% retracement of a drop started at the beginning of September 2020. However, the support zone at 38.2% retracement is more important as it also serves as a neckline of a double top pattern. Should decline deepen and price drop below this hurdle, a bigger downward move may be on the cards. Source: xStation5