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Stock in Europe trade higher
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DE30 drops below 200-hour moving average
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RWE signs memorandum of understanding with Naftogaz
Stock markets in Europe are trading higher at the beginning of a new week. Fed announced that the upcoming symposium at Jackson Hole (begins this Friday) will be a virtual event and investors believe that this means there will not be any major announcement. Indices from the Old Continent gave back part of gains following the release of disappointing German PMIs. Nevertheless, major indices from Europe continue to trade above Friday's closing prices.
Source: xStation5
DE30, along with other indices from Europe, launched a new week higher. However, German index has already erased most of the gains. DE30 dropped to below the price zone at 15,850 pts, marked with 200-hour moving average (purple line). Drop was halted at the 23.6% retracement of the upward move launched on July 19 (15,800 pts area). Those 2 levels - 15,850 pts and 15,800 pts - are key short-term obstacles to watch. Finishing today's trading above 15,850 pts could hint at resumption of the upward move while a break below 15,800 pts may suggest that bears are gaining control once again. Note that equity markets may experience a jump in volatility near 2:45 pm BST when US PMIs for August are released.
Company News
RWE (RWE.DE) signed a memorandum of understanding on hydrogen with the Ukrainian Naftogaz. Two companies will explore options for mutually beneficial cooperation in the green hydrogen field, including development of green hydrogen and ammonia production facilities in Ukraine.
Vonovia (VNA.DE) has officially launched its final takeover offer for Deutsche Wohnen (DWNI.DE). Vonovia offers to buy shares of Deutsche Wohnen for €53 per share. Previous offer was for €52 per share.
RWE (RWE.DE) launched today's trading with a bullish price gap, extending a month-long upward move to almost 20%. However, bulls were unable to maintain those gains and the stock began to move lower. Share fully erased today's morning jump and tested 200-session moving average in the €32.80 area (purple line). Breaking below this hurdle could hint at more weakness going forward. Source: xStation5
