DE30 tests short-term support at 15,240 pts

• European markets trade mixed

• DAX tests support zone at 15,240 pts

• Allianz takes €3.7 billion charge on hedge fund implosion

European stock markets are trading mixed on the final trading day of the week. Blue chips indices from France and Italy trade higher while German and Dutch equities drop. Polish, Spanish and UK indices trade more or less flat. Geopolitics are on top of the agenda with the world closely observing developments in the eastern Ukraine. A potentially big factor in today's afternoon trading could be rebalancing ahead of the long US weekend.

Source: xStation5

DE30 gained overnight on news of a planned meeting between US Secretary of State Blinken and Russian Foreign Affairs Minister Lavrov. However, the upward move was halted ahead of the European cash session launch at 15,330 pts resistance zone. Index pulled back later on and is currently testing support at 15,240 pts. In case we see a break below, the lower limit of a short-term downward channel in the 15,150 pts area could be the next target for sellers. On the other hand, should buyers manage to defend 15,240 pts area, a recovery move could be launched. In such a scenario, the aforementioned 15,330 pts area will become the first level to watch. Traders should be aware of a potential selling during the US session amid high geopolitical tensions ahead of the long weekend in the United States.

Company News

Allianz (ALV.DE) reported solid 2021 results. Company reported a 5.7% jump in revenue, to €148.5 billion. Operating profit increased 24.6%, to €13.4 billion, while net income dropped 2.9% to €6.6 billion. Drop in net profit was a result of the €3.7 billion charge the company took in expectation of settlements with major shareholders of its imploded hedge fund. Q4 revenue increased 7.9% YoY, to €38.4 billion, while operating profit was 18% YoY higher at €3.5 billion.

Ship transporting Volkswagen Group (VOW.DE) vehicles from Europe to the United States caught fire off the coast of Portugal. Crew was evacuated but cargo was left ablaze. Volkswagen Group confirmed around 4,000 Group vehicles were onboard.

Bayer (BAYN.DE) boosted sales estimates for its new prostate cancer drug, Nubeqa, and now expects sales to exceed €3 billion in its peak year, up from previous estimate of €1 billion in peak period sales. Forecast was lifted after trial showed that supplementing standard therapy with Nubeqa results in 32.5% reduction in risk of dying.

Share price of Allianz (ALV.DE) is taking a hit today after the company reported a €3.7 billion charge on hedge fund implosion. Stock is attempting to break below the support zone in the €220.00 area. However, the first attempt of doing so was a failed one with a 50-session moving average (green line) halting decline. Source: xStation5