- European indices trade slightly higher
- DE30 pulls back from 15,000 pts area
- Deutsche Bank jumps 6% after Q3 earnings
Major European stock market indices are little changed today. German DAX futures (DE30) pull back from the 15,000 pts area after bulls failed to break above this hurdle yesterday. UK FTSE 100 (UK100) is outperformer among European indices today, gaining around 0.1% higher. Deutsche Bank rallies 6% after releasing Q3 2023 earnings and hinting at increased shareholder payouts.
Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appDE30 is trading lower today, following a failed attempt to break above the 15,000 pts resistance zone yesterday. Taking a look at the chart at D1 interval, we can see that the index bounced off the 14,800 pts support zone, marked with 38.2% retracement of the upward move launched at the turn of Q3 and Q4 2022. A point to note is that this is the same price zone that halted declines back in March 2023. A strong demand-side reaction to this hurdle signals that bulls have not given up, at least not yet. However, failure to break back above 15,000 pts also signals that there is not too much conviction among the bulls either. Having said that, a period of range trading cannot be ruled out unless a catalyst for a more significant move surfaces.
Company News
Deutsche Bank (DBK.DE) is the best performing DAX member today, trading over 6% higher at press time. Company reported a 3.1% YoY jump in Q3 revenue, to €7.13 billion (exp. €7.11 billion). Beat was driven by a 21% YoY jump in Corporate Bank revenue, to €1.89 billion, as well as 3.4% YoY jump in Private Banking revenue, to €2.34 billion. Fixed income trading revenue at €1.90 billion was weaker than €1.98 billion expected. Common equity Tier 1 ratio improved from 13.3% in Q3 2022 to 13.9% now (exp. 13.6%). Pre-tax profit was 6.7% YoY higher at €1.72 billion (exp. €1.6 billion) while net income was 7.5% YoY lower at €1.03 billion. However, the move higher in Deutsche Bank stock today is driven primarily by executives saying that the bank plans to increase shareholder payouts as improved asset allocation allows it to release €3 billion in capital.
Deutsche Bank (DBK.DE) bounced off the support zone marked with 38.2% retracement and rallied towards the upper limit, marked with 50% retracement and 200-session moving average. However, the first attempt at breaking below this hurdle turned out to be a failure. Source: xStation5
Beiersdorf (BEI.DE) revenue increased 7.8% YoY in the January-September period, to €7.26 billion (exp. €7.28 billion). Consumer sales were 10% YoY higher at €5.99 billion (exp. €6.01 billion) while Tesa sales were 2.2% YoY lower at €1.26 billion (exp. €1.27 billion). Organic sales growth reached 11.2% YoY. Beiersdorf decided to upgrade the full-year forecast for the Consumer Business Segment and now expects low-double-digit organic sales growth in the segment.
Symrise (SY1.DE) is trading slightly higher after reporting sales for Q3 2023. Company achieved organic sales growth of 6.4% YoY (exp. 4.4% YoY) driven by 7.1% YoY growth in Scent & Care (exp. 3.25%). Organic growth in the Taste, Nutrition & Health segment reached 6% (exp. 5.1%). Beiersdorf still expects full-year sales to grow 5-7% and EBITDA margin to reach around 20%.
Symrise (SY1.DE) launched today's trading with a big bullish price gap. However, bulls failed to hold onto those gains and stock has almost completely filled the price gap. Stock is looking towards a test of the 50-session moving average (green line) as a support. Source: xStation5
