European indices jump, DE30 approaches 15,500 pts area

• European markets trade higher

• DE30 trades 1.5% higher on the day

• Deutsche Bank drops on Cerberus share sale

European stock market indices trade higher on Wednesday, following an upbeat session on Wall Street yesterday and in Asia earlier today. Blue chips indices from Western Europe trade over 1% higher with Italian FTSE MIB (ITA40) and Dutch AEX (NED25) being top performers gaining 1.7% and 1.9%, respectively. Russian RTS gains 2.5%. Economic calendar for today's lacks major releases but traders should be aware of increased volatility near US session open (2:30 pm GMT)

Source: xStation5

DE30 continues recovery from last week's drop. Index climbed above 38.2% retracement of the drop launched at the beginning of this year, as well as above the 200-hour moving average (purple line). DE30 is approaching the lower limit of the previously broken upward channel. The nearest resistance zone to watch can be found slightly above the limit of the aforementioned channel and is marked with the 50% retracement. 

Company News

Siemens Energy (ENR.DE) reported a net loss for fiscal-Q1 2020. Company reported a net loss of €240 million, compared to a net profit of €99 million a year ago. Revenue dropped 11.4% YoY, to €5.956 billion, while orders were 10.1% YoY higher at €8.330 billion. Wind turbine unit, Siemens Gamesa, was the main drag on earnings of the company. Siemens Energy also warned that it expects supply chain issues to persist in 2022.

Cerberus Capital Management announced on Tuesday that it intends to sell 15 million shares from its Deutsche Bank (DBK.DE) stake. Block is placed at €14.15 per share, a slight discount to market price, for a total of $212 million.

Airbus (AIR.DE) booked 36 gross orders in January. Company delivered 30 planes in the first month of 2022. Meanwhile, Boeing, which is recovering from 747 MAX issues, managed to deliver 32 planes in January. Airbus order log is negatively affected by the ongoing dispute with Qatar Airways. 

Analysts's actions

• Brenntag (BNR.DE) upgraded to "buy" at Warburg Research. Price target set at €87.50

• Volkswagen (VOW.DE) upgraded to "neutral" at Exane. Price target set at €210.00

Deutsche Bank (DBK.DE) is the worst performing DAX member today and the only one to trade lower on the day. Stock pulls back following news of a planned share sale by Cerberus Capital Management. From a technical point of view, upward move stalled after reaching resistance at €14.28, marked with the 161.8% exterior retracement of June-July 2021 drop. Source: xStation5