DE40: German index reaches fresh record highs above 17,200 pts

• European indices trade higher
• DE40 rallies to fresh record highs above 17,200 pts
• Airbus targets 800 aircraft deliveries in 2024

European indices are trading higher today during the final trading day of the week. German DAX gains 0.8%, UK FTSE 100 adds 0.9%, while French CAC40 trades 0.6% higher. Polish WIG20 is top performer in Europe today with a 1.5% gain at press time. German DAX broke out of a 2-week trading range and reach fresh record highs above 17,200 pts.

Source: xStation5

Price moves on the DAX futures (DE40) have been largely confined to the 16,950-17,100 pts trading range since the beginning of the February. Index made a few false breakouts from the range over the past 2 weeks (orange circles on the chart above), but all of them turned out to be short-lived. However, a break above the upper limit of the range was made yesterday and bullish momentum continues to be strong. Index is closing in on the textbook target of the upside breakout from the range in the 17,250 pts area. Breaking above this hurdle would pave the way for a text of the 161.8% exterior retracement of the February 12-13, 2024 correction, which can be found in the 17,273 pts area.

Company News

Aixtron (AIXA.DE) gains over 6% as sentiment towards producers of semiconductor manufacturing equipment improved, following release of Applied Materials earnings report. Applied Materials reported net sales for fiscal-Q1 2024 (calendar November 2023 - January 2024) at $6.71 billion. While this marked a 0.4% YoY drop, it was way ahead of the median estimate calling for $6.48 billion. Applied Materials also expects fiscal-Q2 sales to reach $6.1-6.9 billion (exp. $6.3 billion).

Volkswagen (VOW1.DE) signed a supply agreement with India's Mahindra. Under the terms of the agreement, Volkswagen will supply Mahindra with components and batteries for electric vehicles. In other news, it was also reported that Volkswagen Group delivered 698.2 thousand vehicles globally in January, marking a 13.3% YoY increase.

Airbus (AIR.DE) plans to deliver around 800 aircraft in 2024, what would be an around-10% increase compared to 2023 deliveries. However, the target fell short of analysts expectations, which suggested deliveries of around 825 aircraft this year. This means that Airbus edge of Boeing may expand further amid woes of the latter. Airbus delivered 735 aircraft in 2023, while Boeing delivered 528 aircraft.

Aixtron (AIXA.DE) is one of the best performing German stocks today. Company rallies over 6% after solid earnings from Applied Materials boosted sentiment towards producers of semiconductor manufacturing equipment. Stock is trading at the highest level since the end of January and is approaching resistance zone in the €36.50 area. Source: xStation5