- European stock markets trade higher
- Germany manufacturing PMI revised lower
- Delivery Hero (DHER.DE) plans to increase its holding of Glovo
European indices launched the first trading session of 2022 higher with DAX 30 nearing a six-week high and Paris' CAC 40 hitting a new record, as investors digested mixed PMI data. Final French reading was revised higher to 55.6 in December from a preliminary reading of 54.9, slightly below 55.9 in November. Meanwhile, the German index was revised lower to 57.4 in December from a preliminary of 57.9, matching the previous month's reading of 57.4 which was the lowest since January 2021, as supply constraints continued to held back factory production.
Early in the session, the automobile sector was leading gains with Porsche, BMW, Volkswagen all trading 2% higher, as investors expect solid Q4 delivery results from Tesla (TSLA.US) and other electric vehicle producers. Also news that Hyundai (HYUD.DE) forecasts over 12.0% increase in auto sales in 2022 lifted market sentiment.
The airplane industry also moved higher, after Safran (SAF.FR) announced plans to hire up to 12,000 employees in anticipation of air traffic recovering in 2022, with their CEO saying, "The worst is behind us." Airbus (AIR.DE) stock rose over 2.0% and Lufthansa (LHA.DE) jumped more than 6.0%.
DE30 rose sharply during today’s session and is on its way to erase all losses caused by the downward move which started in late-November 2021. If current sentiment prevails, upward move may accelerate toward an all-time high at 16325 pts which is marked with the upper limit of a local market geometry. Source: xStation5
Company news:
Delivery Hero (DHER.DE) said on Friday it had signed an agreement to acquire about a 39.4% stake in Spanish delivery app Glovo.
Delivery Hero (DHER.DE) stock price fell sharply at the end of November however buyers managed to halt declines around support at €87.40 which is marked with lower limit of the 1:1 structure and is currently approaching psychological resistance at €100.00 which is marked with 38.2% Fibonacci retracement of the upward wave launched in December 2018. Should a break higher occur, upward move may accelerate towards next resistance at €117.60. Source: xStation5
