- 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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSource: 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
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
