DE30 trades near 2-month highs

• European indices trade mixed

• DE30 trades near 2-month high

• HelloFresh rallies after sales outlook boost

Stock markets in Europe launched today's trading near yesterday's closing prices. However, some of the European blue chips indices caught a bid later on. German DAX (DE30) and French CAC40 (FRA40) trade higher while indices from Italy, Spain, the Netherlands and UK pull back. Russian RTS (RUS50) is one of the worst performing indices from the Old Continent today as it drops 1%.

Source: xStation5

DE30 index continues to react to Fibonacci retracements of the downward move started in August 2021. Index bounced off the 61.8% retracement last week and has climbed above 78.6% retracement at the beginning of this week. Following a retest of the area this morning, DE30 has once again caught a bid and moved above 15,850 pts, reaching the highest level since September 7, 2021. The index is trading within a steep upward channel and the next resistance level to watch can be found near the upper limit in the 15,960 pts area. This zone is marked with local highs from August and is located just slightly below all-time highs. The big event of the week is the FOMC monetary policy decision that will be announced tomorrow. Expectations are for an official taper announcement and if confirmed, stocks may trade under pressure.

Company News

HelloFresh (HFG.DE) rallies over 10% today, following a full-year outlook boost. The German meal-kit company said that it expects sales to increase 57-62% in 2021, up from a previous forecast of 45-55%. Company said that reaching €10 billion in revenue remains its medium-term target. HelloFresh reported Q3 revenue at €1.42 billion (exp €1.32 billion) while adjusted EBITDA dropped from €114.7 million in Q3 2020 to €79.8 million now. Company said that strong results are driven by high consumer growth and higher average order value.

Fresenius (FRE.DE) reported Q3 sales at €9.32 billion (exp. €9.27 billion) and adjusted EBIT at €1.04 billion (€1.04 billion). Adjusted net income reached €435 million, up from a €184.1 million loss a year ago and above the median estimate of €430 million. Company boosted the full-year outlook and now expects sales to grow in the "mid single-digit range", assuming constant FX rates. 

Fresenius Medical Care (FME.DE) announced that it plans to reorganize its business and split operations into two business segments. Plan is expected to yield €500 million in cost savings by the end of 2025 and will result in the reduction of 5,000 jobs worldwide. Company assumes a one-time reorganization investment of €450-500 million with cost savings from the plan expected to become visible in 2023.

Share price of HelloFresh (HFG.DE) rallies today, following a full-year outlook boost. Stock trades around 14% higher on the day and has managed to climb back above a couple technical levels - lower limit of the market geometry, €75.00 price zone and upward trendline. The next near-term resistance can be found in the €84.50 swing area, where the 50-session moving average can also be found (green line). Source: xStation5