-
European stock market indices trade higher
-
DE30 tests 50% retracement near 14,060 pts
-
Aurubis cancels dividend policy, share swing wildly
European stock markets are trading higher with major blue chips indices from Western Europe gaining 0.6-1.1%. DAX futures trade around 0.8% higher on the day. Situation on the global markets have calmed since BoJ surprised investors with a hawkish pivot yesterday but JPY held onto most of yesterday's gains.
Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appJust as we have hinted in our DE30 analysis yesterday, the German index managed to paint a bullish candlestick pattern in the 14,000 pts area and defend the lower limit of a local market geometry. Bulls remain in control with the index extending gains to 14,060 pts today. Note that 50% retracement of the downward impulse launched in late-2021 can be found near 14,060 pts mark and a break above would brighten outlook for the bulls further. In case the recovery move continues and index continues to recover from recent losses, the first target for buyers could be resistance zone marked with 61.8% retracement (14,600 pts area).
Company News
Adidas (ADS.DE) is one of the best performing DAX members today, following release of earnings by its US peer Nike. Nike gained 13% in US after-hours trading after reporting a 13% YoY increase in global sales, to $13.3 billion, for the quarter ended in November 2022. (exp. $12.6 billion). Solid showing of a US apparel company boosted sentiment for the whole sector in Europe with Adidas shares gaining over 3% while Puma (PUM.DE) trades around 8% higher.
According to a Bloomberg report, Deutsche Bank (DBK.DE) is considering giving a 4% salary hike to some of its top earning employees in dealmaking, in an attempt to help them offset rising costs of living. However, the report also claims that the German lender will cut bonuses for debt and equity dealmakers.
Aurubis (NDA.DE) said that it is suspending its dividend policy and will no longer stick to paying out at least 25% of operating net income as dividend. Company said that it will now set a new payout ratio each year. Recommended dividend for fiscal 2021/22 was set at €1.80 per share, up from €1.60 per share in fiscal 2020/2021.
According to an Ansa report, Lufthansa (LHA.DE) is considering taking a minority stake in ITA Airways, an Italian state-owned airline. Report claims that Lufthansa is considering taking a 40-49% stake in the company, what would allow the Italian government to remain as majority holder.
Aurubis (NDA.DE) dropped at the beginning of today's trading after the company announced that it will scrap its current dividend policy. However, shares have quickly recovered from losses and are now trading 2% higher. Stock is testing a resistance zone in the €81.00 area, marked with recent local highs. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
