DE30 tests support zone in the 14,400 pts area

• European stocks trade mixed

• DE30 tests support zone in the 14,400 pts area

• Thyssenkrupp suspends full-year forecast

European stock markets are trading mixed following the hawkish Fed meeting yesterday. Geopolitics still loom large on the sentiment with no significant progress towards reaching peace between Russia and Ukraine being made. German, Italian and Spanish indices drop while benchmarks from UK, France and the Netherlands gain.

Source: xStation5

DE30 managed to break above 14,400 pts resistance zone yesterday but the upward move was later halted at the 14,550 pts resistance. Index began to trade sideways in 14,400-14,550 pts. A test of the lower limit of this range occured this morning but bulls managed to regain control and push the price back above. Nevertheless, price remains close and repeated attempt to break below cannot be ruled out. Economic calendar for today is quite empty and there aren't any major releases scheduled that could move European indices.

Company News

According to French BFM TV, Airbus (AIR.DE) is interested in acquiring the cybersecurity unit of Atos, a French software company. Report also state that Airbus was interested in acquiring the whole Atos but ultimately decided to pursue only acquisition of the cybersecurity business. Neither Airbus nor Atos commented on those claims.

Volkswagen (VOW1.DE) joined Initiative for Responsible Mining Assurance, an initiative aimed at promoting sustainable mining of materials used, for example, in electric vehicles. Volkswagen is the biggest member of the initiative but US carmakers General Motors and Ford also participate. 

ThyssenKrupp (TKA.DE) suspended the full-year forecast for the current fiscal year. Company will not provide forecasts for free cash flow amid the war in Ukraine and its consequences. Thyssenkrupp also said that it is uncertain whether spin-off of its steel division will go through in current market conditions.

Analysts' actions

• Henkel (HEN3.DE) downgraded to "sector perform" at RBC. Price target set at €67.00

• HeidelbergCement (HEI.DE) upgraded to "neutral" at JPMorgan. Price target set at €60.00

• Befesa (BFSA.DE) rated "outperform" at Oddo BHF. Price target set at €78.00

Share price of Thyssenkrupp (TKA.DE) is pulling back after the company announced suspension of full-year forecast amid the Ukraine war. Stock pulled back from €9.50 resistance zone and is now testing support at €8.25. Source: xStation5