-
European indices drop amid jump in US yields
-
DE30 slumps to 15,700 pts
-
European car sales plunged 22% YoY in December
European stock markets are trading lower on Tuesday. Indices from the Old Continent follow US futures lower amid a jump in yields. Tech shares are top underperformers. Dutch AEX (NED25) is the top underperformer in the Western Europe while Russian indices are taking the biggest hit overall. None of the European blue chips indices is trading higher today.
ZEW index for January was released today at 10:00 am GMT and showed a massive positive surprise. Expectations index jumped from 29.9 to 51.7 pts while the market expected an increase to 32.5). Current conditions index dropped from -7.4 to -10.2 (exp. -7.5). Release shows that investors remain upbeat when it comes to future outlook. However, in spite of a massive beat in expectations index, markets barely reacted to the data.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
After a day-long struggle near the 38.2% retracement of the downward move launched on January 5, 2022, DE30 slumped below this hurdle overnight. The index took a steep dive at the beginning of today's cash session and reached the lowest level since end-December 2021. Declines were halted near the local low from January 10, 2022 in the 15,700 pts area and an attempt to launch a recovery move from this area can be spotted at press time. The nearest resistance can be found at 23.6% retracement in the 15,845 pts area.
Company News
European car sales dropped 22% in December. This was the sixth month of lower YoY sales in a row. On a full-year basis European car sales dropped 1.5% in 2021. Sales of Volkswagen Group (VOW1.DE) dropped 30.4% YoY in December, sales of BMW (BMW.DE) were 22.3% YoY lower while sales of Daimler (DAI.DE) were 14.9% YoY lower.
Hugo Boss (BOSS.DE) announced preliminary Q4 2021 results today. Company said that it generated sales of €906 million (exp. €861.4 million) and preliminary EBIT of €100 million. Preliminary EBIT for full-2021 came in at €229 million (exp. €204.1 million). Final results will be released on March 10, 2022.
Analysts' actions
-
Lufthansa (LHA.DE) upgraded to "market perform" at Bernstein. Price target was set at €7.85
-
Beiersdorf (BEI.DE) upgraded to "buy" at Deutsche Bank. Price target was set at €105.00
Volkswagen (VOW1.DE) is trading lower today following the release of a lacklustre European car sales data. Stock continues a pullback following a failed attempt of breaking above the 200-session moving average and the downward trendline. Price is testing 38.2% retracement of the upward move launched in November 2020 and breaking below this hurdle may lead to a test of the lower limit of the triangle pattern at €260.00. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
