DE30 tests resistance zone at 15,350 pts

• Stocks in Europe trade higher ahead of NFP release

• DE30 tests 15,350 pts resistance

• Adidas surges after earnings

European stock markets trade higher following a solid session on Wall Street yesterday. Polish WIG20 (W20) is the best performing European index trading 1.8% higher so far today. Majority of blue chip indices from the Western Europe trade over 0.2% higher. French CAC40 (FRA40) and Italian FTSE MIB (ITA40) are laggards trading near yesterday's closing prices.

Source: xStation5

Strong upward move on DE30 launched on Tuesday evening continues. German index leaped above 15,300 pts handle at the beginning of today's session and continued to advance until it reached the resistance zone at 15,350 pts. Bulls look to have taken a pause and one cannot rule out that trading will remain muted until release of the US NFP report at 1:30 pm BST. In case report disappoints and indices move lower, the major support to watch can be found at 50% retracement of the correction launched in mid-April (15,180 pts area). Lower limit of the Overbalance structure can be found in the same area.

Company News

Adidas (ADS.DE) is surging today following release of solid Q1 earnings. Company reported sales of 5.27 billion (exp. €5.03 billion). Operating profit reached €704 million (exp. €580 million) while net income from continuing operations reached €502 million (exp. €390 million). Company confirmed forecast of €1.25-1.45 billion in full-year net income from continuing operations.

BMW (BMW.DE) reported a 15% YoY increase in Q1 revenue, to €26.78 billion (exp. €26.15 billion). EBIT increased from €1.38 billion in Q1 2020 to €3.03 billion in Q1 2021 (exp. €2.62 billion). Motorcycle revenue increased 35% YoY, to €753 million (exp. €571 million), while automotive revenue jumped 27% YoY, to €22.76 billion (exp. €21.22 billion). BMW said it expects full-year automotive margin near the upper end of 6-8% forecast.

Siemens (SIE.DE) reported results for fiscal Q2 (calendar Q1). German industrial company reported revenue at €14.665 billion, compared to expected 14.109 billion. Net income came in at €1.404 billion (exp. €1.437 billion) while adjusted EPS reached €1.73 (exp. €1.83). Siemens boosted full-year net income forecast to €5.7-6.2 billion from previous €5-5.5 billion range. Company also expects revenue growth to reach 9-11%.

Adidas (ADS.DE) launched today's trading with a massive bullish price gap. Stock gained as much as 9% at one point at the beginning of today's session but has pulled back slightly since. 200-session moving average in the €275 area is a key support to watch. When it comes to resistance levels, €286 zone is the nearest major hurdle for bulls. Source: xStation5