DE30: European stocks look past US tech sell-off

• European markets trade a touch higher

• DE30 may be set for another test of post-pandemic highs

• HelloFresh gains after boosting full-year outlook

In spite of a heavy tech sell-off on the US exchanges and lacklustre Asian session, indices from the Old Continent managed to trade slightly higher on Thursday morning. However, the scale of gains in the Western Europe is quite minor. Investors await hints from the EU summit on whether the budget and recovery fund will be approved (Poland and Hungary have reportedly reached a compromise with Germany yesterday). Apart from that, the ECB is expected to announce increased size of bond-buying later today.

Source: xStation5

DE30 made another failed attempt at setting fresh post-pandemic highs yesterday. The index tested resistance zone at 13,450 pts but failed to break above it and pulled back. However, some buying can be spotted today therefore another test cannot be ruled out in the near future. Should we see a break above the aforementioned 13,450 pts area, bulls could aim for the test of an early-2020 swing level at 13,650 pts, that is also marked with a 127.2% exterior retracement of the October's sell-off. Note that this level lies just a touch below the all-time high from February at around 13,800 pts. On the other hand, if DE30 fails to set new post-pandemic highs and launches a correction, the 13,000 pts area is the first main support to watch.

DAX members at 9:42 am GMT. Source: Bloomberg

Company News

HelloFresh (HFG.DE) is trading higher today after the company decided to boost full-year forecast. German meal-kit company expects full-year sales growth of 107-112%, up from 95-105% in the previous forecast. Adjusted EBITDA margin is seen coming in between 12.5 and 13.5%, up from 11.4-12.8%. Sales growth in 2021 is expected between 20 and 25%.

Lufthansa (LHA.DE) announced that it will launch a Covid vaccine transport service in early-January.

According to the Bloomberg report, BASF (BAS.DE) is exploring options for sale of some of its chemical assets in the United States. Proceeds from the sale could reach around $400 million.

Deutsche Telekom (DTE.DE) announced yesterday that it has expanded the cloud initiative partnership with Microsoft for 7 years.

Analysts' action:

• Vonovia (VNA.DE) rated "buy" at Societe Generale. Price target set at €68.10

• Deutsche Wohnen (DWNI.DE) rated "buy" at Societe Generale. Price target set at €44.30

HelloFresh (HFG.DE) gains after releasing updated full-year outlook. The stock is trying to clear the €52.50 resistance zone that is the final hurdle blocking the way towards all-time high at around €56.30. Source: xStation5