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European stock markets trade lower
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DE30 pulls back from ATH
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Covestro upgrades full-year outlook
European stock markets mostly lower on Tuesday. Dutch AEX (NED25), UK FTSE 100 (UK100) and Polish WIG20 (W20) post gains while remaining indices from the Old Continent pull back. Spanish Ibex (SPA35) is a top laggard, dropping 0.8%. US CPI release at 1:30 pm BST is a key macro event of the day and may result in a short-term volatility spike across many markets, including equities.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 rallied yesterday in the afternoon and tested all-time highs from mid-June in the 15,800 pts area. German index was unable to break higher and a small pullback can be observed today. Short-term support can be found at 15,750 pts and it has so far limited downward moves today. The aforementioned 15,800 pts zone remains a near-term resistance. In case we see a break to a fresh record highs, the closest major resistance to watch can be found at 15,960 pts and is marked with 127.2% retracement of the correction from the second half of June. Potential target of a recent double bottom pattern lies around 100 pts higher.
Company News
Covestro (1COV.DE) decided to upgrade full-year forecasts due to an improved outlook for the second half of the year. Covestro expects EBITDA to reach €2.7-3.1 billion in full-2021, up from previous forecast of €2.2-2.7 billion. Free cash flow is expected at €1.6-2.0 billion, up from €1.3-1.8 billion previously. Core volume growth forecast was left unchanged at 10-15%. Company also expects Q2 EBITDA at around €815 million. Covestro will report half-year results on August 6.
Delivery Hero (DHER.DE) confirmed that it has asked the South Fair Trade Commission to extend the period required for divestiture of the South Korean unit. Deadline for divestiture ends on August 2 and Delivery Hero seeks 5-month extension. Company was ordered to sell its South Korea unit as a condition for acquisition of Woowa Brothers.
Share price of Gerresheimer (GXI.DE) dived today. Company reported a 7.5% YoY increase in Q2 organic revenue, to €377 million. Adjusted Q2 EBITDA in core business increased 3.1% YoY to €85 million while adjusted Q2 net income reached €41 million, or adjusted EPS of €1.28 (+19.1%YoY). Company confirmed the full-year outlook and said it expects a strong second half of 2021.
Covestro (COV1.DE) gains following an upgrade of full-year forecasts. Stock is approaching the upper limit of a recent trading range at €58.30. The upper limit of the Overbalance structure can be found in the same area so breaking above may be followed by a move towards recent high at around €63.25. Source: xStation5
