European stocks trade mixed, DE30 below 16,000 pts

• European indices trade mixed

• DE30 pulls back below 16,000 pts

• BMW with record sales in China in 2021

European stock market indices are trading mixed on Thursday. Blue chips indices from Germany, UK, France or Russia pull back slightly while benchmarks from the Netherlands, Spain, Italy and Poland advance. There are no key macro releases scheduled for today. However, confirmation hearing of Lael Brainard at 3:00 pm GMT may trigger some volatility just as Powell's hearing did on Tuesday. 

Source: xStation5

DE30 has been slowly drifting lower after a failed attempt of breaking back above the 61.8% retracement of the downward move launched last week (16,060 pts area). The German index pulled back below the price zone marked with 50% retracement and 200-hour moving average (purple line) in the 16,000 pts area later on and tested support at 38.2% retracement (15,925 pts). However, while the index dropped below the lower limit of a local market geometry at 15,970 pts, it managed to quickly return back above it, signalling that short-term uptrend may not be over yet. Psychological 16,000 pts area is a near-term resistance to watch.

Company News

Thyssenkrupp (TKA.DE) plans to raise around €600 million via a share sale in its electrolysis unit. Thyssenkrupp wants to list the unit and rumoured size of share sale may result with the new company having a free float of 10-20% and a valuation of €3-6 billion. Thyssenkrupp plans to retain a majority stake in the unit.

The Chinese unit of Volkswagen (VOW1.DE) closed two factories in Tianjin due to Covid-19 outbreaks.

E.ON (EOAN.DE) will acquire a 25% stake in Horisont Energi, a Norwegian clean energy and carbon storage company.  E.ON will pay around €37.5 million for the stake. Two companies will work together on carbon-capture and carbon-removal businesses.

BMW (BMW.DE) announced that it delivered 846 thousand BMW and Mini cars in China in 2021 - up 9% YoY. Sales of so-called "new energy vehicles" - hybrids and EVs - increased 70% YoY to 48 thousand. 2021 was a record year for BMW in China.

Analysts' actions

• Henkel (HEN3.DE) upgraded to "buy" at Societe Generale. Price target set at €88.00

• K+S (SDF.DE) upgraded to "buy" at Berenberg. Price target set at €20.00

Shares of Thyssenkrupp (TKA.DE) traded higher after the company unveiled that it plans to retain a majority stake in the hydrogen business that is about to get listed. Stock continues upward move launched after bouncing off the support at 38.2% retracement. The near-term resistance to watch is marked with local high from late-November (€11.35). On the other hand, if bulls lose control over the market and shares start to drop, attention may shift to the support at €10.15. Source: xStation5