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European markets trade mixed
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DE30 tested resistance zone at 15,230 pts
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SAP boosts full-year cloud revenue forecast
European stock markets indices trade mixed on Wednesday. While majority of blue chips indices from the Old Continent launched today's trading, some of them have managed to climb above yesterday's closing prices. German DAX (DE30) is European top performer today, gaining around 0.6%. Meanwhile, Spanish IBEX (SPA35), Russian RTS (RUS50), UK FTSE 100 (UK100) and Polish WIG20 (W20) lag behind dropping around 0.4% each.
Final CPI data for September from Germany was released at 7:00 am BST today but did not turn out to be a surprise. Report confirmed price growth dynamic suggested by preliminary release - 4.1% YoY for headline CPI gauge.
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Source: xStation5
DE30 enjoys a strong upward move at the beginning of today's cash session and is approaching the area marked with last week's highs. Zone ranging betweet 15,230 pts and 38.2% retracement of a recent downward move has been tested a few times recently, both as a support and as a resistance. Breaking above this zone could trigger a stronger upward impulse. In such a scenario, the area marked with the upper limit of the Overbalance structure will become a key target for bulls. This limit can be found a touch below the 61.8% retracement (15,550 pts). US CPI release at 1:30 pm BST and FOMC minutes at 7:00 pm BST are potential movers for equity markets today.
Company News
SAP (SAP.DE) boosted the full-year sales forecast on the back of accelerating growth in cloud business. Company said that it expects 2021 cloud revenue to reach €9.4-9.6 billion, up from previous forecast of €9.3-9.5 billion. New targets assume a 16-19% increase in cloud revenue (on constant FX basis). Company also said that preliminary Q3 results showed cloud revenue at €2.39 billion, 20% year-over-year higher.
According to the Handelsblatt report, Herbert Diess, CEO of Volkswagen (VOW1.DE), told company's supervisory board back in September that restructuring of the company may lead to reduction of 30,000 jobs. Supervisory board has reportedly forbidden Diess to consider restructuring scenarios that include big job cuts.
Palladium Group, a Spanish hotel chain, filed a lawsuit for over €500 million against Deutsche Bank (DBK.DE). Hotel chain claims that Deutsche Bank has misled it while selling complex FX derivatives, leading to a build-up of an over-5.5 billion euro notional value position. Deutsche Bank said that claims from Palladium Group lack foundation and will defend itself.
S&P Ratings affirmed long-term rating for Allianz (ALV.DE) at "AA" with stable outlook.
Analysts' actions
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Sartorius (SRT.DE) upgraded to "hold" at Kepler. Price target set at €555
SAP (SAP.DE) launched today's trading session with a big bullish price gap. Stock benefits from cloud revenue forecast upgrade and climbs above the swing level marked with 38.2% retracement of the post-pandemic recovery move (€120 area). Key resistance zone to watch now can be found ranging above the 23.6% retracement in the €130 area. Source: xStation5
