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European indices trade higher
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DE30 tests upper limit of short-term range
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Nemetschek gains after releasing 2021 earnings
European stock markets are trading mostly higher on Tuesday. Blue chips indices from German, Italy, Portugal and Austria are top performers on the Old Continent as all of them trade 1% higher or more. Swiss SMI (SUI20) is a laggard as it trades around 0.2% lower at press time. Economic calendar for today is empty but traders will get to hear from Fed members in the afternoon.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is making another test of the upper limit of a recent short-term trading range above 15,500 pts handle. This resistance zone is also marked with local highs from late-February. Another failure to break above this hurdle could hint at yet another pullback towards the lower limit of the range in the 14,250 pts area. As the economic calendar for today is empty, indices may lack a catalyst for bigger moves. War-related news could trigger some bigger moves but so far Russia-Ukraine talks seems to have stalled and no progress is being made. As such, a period of sideways trading in 14,250-14,500 pts range cannot be ruled out.
Company News
Volkswagen (VOW1.DE) announced that it has signed a Memorandum of Understanding with Salzgitter (SZG.DE) for supply of low-CO2 steel. Volkswagen will thus become one of the first customers of Salzgitter to use its new low-emission steel. Volkswagen plans to use this type of steel in the new Trinity model, with production expected to begin in 2026 in Germany.
Nemetschek (NEM.DE) reported a 14.2% jump in 2021 revenue, to €681.5 million, and a 46% increase in subscription revenue, to €132 million. EBITDA increased 28.8% to €222 million with EBITDA margin improving to 32.6%. EPS increased 38.9% to €1.17. Company said that its outlook for 2022 remains positive and that it expects sales growth of 12-14% and EBITDA margin at 32-33%.
Share price of Nemetschek (NEM.DE) jumped today following the release of the 2021 earnings report. Stock tested resistance zone marked with a 38.2% retracement of the upward move launched in March 2021. The first attempt of breaking above was a failed one and stock started to pull back. The first near-term support to watch in case pullback continues can be found at the 200-session moving average (purple line, €86 area). Source: xStation5
