DE30 returns above 14,000 pts

• European indices trade higher

• DE30 bounces off 13,800 pts support and returns above 14,000 pts mark

• Earnings reports from HelloFresh and Delivery Hero

European stock markets indices are trading higher on Thursday. Concerns over the possibility of Russia cutting entire Europe off its natural gas eased somewhat, allowing European indices to rally. However, no new developments on the natural gas story were made so it remains a risk factor going forward. German DAX (DE30) and French CAC40 (FRA40) are the best performing European blue chips indices today, trading around 2% higher.

DE30 bulls managed to defend the support zone marked with 50% retracement of the upward move launched after US presidential elections (13,800 pts area). Index is experiencing strong gains today and returns above a psychological 14,000 pts mark. A near-term resistance zone to watch can be found ranging around 38.2% retracement in the 14,400 pts area. Source: xStation5

In spite of reporting a rather solid Q1 earnings, Delivery Hero (DHER.DE) is the worst performing DAX member today. Company reported a 52% YoY jump in segment revenue to €2.05 billion but it fell short of the €2.13 billion estimate. Gross merchandise value (GMV) increased 31% YoY to €10.1 billion - in-line with estimates. Delivery Hero confirmed full-year forecasts, expecting €44-45 billion in GMV and €9.5-10.5 billion in segment revenue. However, stock traded as much as 9% higher at the beginning of the session but reversed gains after the company said that it will stop reporting orders data.

HelloFresh (HFG.DE) is the best performing DAX member. Company reported that it had 8.52 million active customers in Q1 2022 while the market expected 8.2 million. Sales at constant FX increased 26.4% (exp. 23.3%) and the company had 34.57 million orders during the quarter (exp. 33.8 million). 

Analysts' actions

• Allianz (ALV.DE) rated "buy" at Goldman Sachs. Price target set at €270

Share price of Delivery Hero (DHER.DE) jumped at the beginning of today's cash trading session following the release of solid Q1 2022 results. However, advance was halted at the 50-hour moving average (green line) and all of those gains were erased later on when the company announced that it will stop reporting orders data. Textbook range of a downside breakout from previous trading range signals possibility of a drop to €25.65, which is still 8% below current market prices. Source: xStation5