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European markets trade higher
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DE30 tested 16,000 pts area
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Deutsche Wohnen recommends shareholders accept Vonovia offer
European stock markets are trading higher on Tuesday. Indices on the Old Continent build onto gains made yesterday. Polish WIG20 (W20) is a top performer, gaining around 1%. German DAX (DE30) and Italian FTSE MIB (ITA40) also perform well, gaining 0.5% each. Indices from the United Kingdom and Sweden are the only ones to trade lower. However, in these cases the scale of declines is minor.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 rallied overnight and managed to break above the resistance zone marked with the 78.6% retracement of a correction launched August 13 (15,930 pts). The index even managed to test the psychological 16,000 pts barrier during the first half of today's European cash session. Nevertheless, the attempt to break above it was a failed one and the index started to pull back. A pin-bar candlestick with a long upper wick surfaced on the H1 chart. Given that such candlestick patterns often herald reversal on the market, bulls should keep on guard. The near-term support to watch can be found at the aforementioned 78.6% retracement while the 16,000 pts area remains a key near-term resistance.
Company News
According to a Reuters report, LEG Immobilien (LEG.DE) is considering expanding its operations abroad. Moreover, the German company is also weighing whether to buy apartments from Deutsche Wohnen and Vonovia that would likely be sold as a condition for receiving regulatory approval for the merger of the two.
Executive and supervisory boards of Deutsche Wohnen (DWNI.DE) recommend shareholders of the company to accept a new takeover offer from Vonovia (VNA.DE).
According to a Bloomberg report, the Chinese unit of BMW (BMW.DE) is nearing an agreement with Brilliance Auto for the purchase of some of the latter's assets. Deal value is said to be $252 million).
Analysts' actions
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ProSiebenSat.1 Media (PSM.DE) upgraded to "outperform" at Oddo BHF. Price target set at €22.00
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Infineon (IFX.DE) upgraded to "buy" at Stifel. Price target set at €43.00
LEG Immobilien (LEG.DE) is trading lower today. The stock continues a pullback from its recent highs near €140. In case share price breaks below a recent local low at around €134.50, downward move may deepen and the lower limit of the Overbalance structure at €131.90 will become a support level to watch. Source: xStation5
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