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European markets trade lower on Thursday
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DE30 recovers from session lows but still trades lower on the day
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4 DAX members released earnings
European markets are trading lower on Thursday. However, indices managed to recover from session lows and now German DAX trades around 0.5% below yesterday's close. A number of DAX members released earnings reports today
Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appAn attempt of breaking above the 13,200 pts resistance yesterday turned out to be another failure. DE30 continues to trade below the zone but long lower wicks of recent candlesticks hint that bulls may be regaining ground. Key levels to watch are unchanged with the aforementioned 13,200 pts being the near-term resistance and 23.6% retracement of recent upward impulse at around 12,800 being the first support to watch. There are no key releases scheduled for today that could trigger significant moves on the markets. However, the policy panel with Lagarde, Powell and Bailey at 4:45 pm GMT could provide some additional volatility.
Company News
RWE (RWE.DE) reported 13% YoY increase in Q1-Q3 EBITDA, to €2.2 billion. Earnings from continuing operations stood at €1.41 billion compared to a loss of €56 million in the year ago period.Revenue increased to €9.39 billion from €9.06 billion in 2019 while adjusted EPS came in at €1.22. Solid performance of renewables business was an important driver of earnings. RWE confirmed a full-2020 outlook with adjusted EBITDA expected in the €2.7-3.0 billion range.
Merck (MRK.DE) said that adjusted EBITDA jumped over 50% in Q3 2020, to €1.7 billion. Market expected €1.6 billion. Solid performance was driven by high demand for biotech lab supplies. Company boosted full-year EBITDA guidance to €5.05-5.25 billion.
Deutsche Telekom (DTE.DE) reported a 32% YoY increase in Q3 revenue, to €26.4 billion. However, net profit declined 40% YoY to €0.8 billion on the back of the impairment charge recognized in Systems Solutions business unit. Net income adjusted for one-off factors increased 6.3% YoY to €1.5 billion. Company boosted its full-year forecast and now expected adjusted EBITDA above €35 billion, up from €34 billion.
Siemens (SIE.DE) released earnings for fiscal-Q4 today (calendar Q3). German company reported a 28% YoY increase in net income, to €1.9 billion. Comparable sales came in at €15.3 billion, marking a 3% YoY drop. Orders adjusted for FX effects increased 2% YoY to €15.6 billion. Solid performance was reported in Mobility and Industrial Businesses units. Board will propose a total dividend payout of €3.50 per share to the Annual Shareholders' Meeting, down from €3.90 in the previous year.
DAX members at 10:04 am GMT. Source: Bloomberg
