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European markets trade lower
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DE30 halts decline at 15,800 pts
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Siemens and Duerr are considering acquisitions
European stock markets are trading lower on Tuesday, following a weak performance of the Asian equities. However, European indices managed to bounce off the daily lows and are now trading just slightly below yesterday's closing prices. Indices from the eastern part of the Old Continent, especially Russia and Poland, are among a few to trade higher today.
Source: xStation5
DE30 continues to decline for the second day in a row. However, after a quick move lower at the start of the European cash session, the index began to regain ground. DE30 still trades lower on the day but bulls managed to push the index back above the 33-period EMA (H4 interval) as well as an upward trendline. Breaking above a recent local high at 15,950 pts may hint that correction is about to end. In such a scenario the near-term resistance zone to watch can be found in the 16,000 pts area, where an exterior 127.2% retracement of the July correction can be found. 15,800 pts zone, which has halted today's downward move, remains key near-term support.
Company News
Matthias Rebellius, member of the management board of Siemens (SIE.DE), said that the company is looking to acquire companies that develop management software as well as EV charging equipment. Siemens wants to boost its portfolio of smart infrastructure solutions amid the growing number of the so-called smart homes. Rebellius said that Siemens does not have a specified budget for those acquisitions.
Dietmar Heinrich, Chief Financial Officer of Duerr (DUE.DE), said that the company is considering making an acquisition of a medical equipment company to boost its market share in this field.
Rheinmetall (RHM.DE) announced that it has received two orders for pressure valves for commercial vehicles. One of the orders came from an engine manufacturer from China and products will be delivered during the 2021-2025 period. The second order came from a South American customer and will be delivered during the 2022-2027 period. Combined value of both orders is €37 million (excluding VAT).
Analysts' actions
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Henkel (HEN3.DE) downgraded to "sell" at Societe Generale. Price target set at €79
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Varta (VAR1.DE) upgraded to "buy" at DZ Bank. Price target left unchanged at €145
Varta (VAR1.DE) slumped earlier this month following the release of a disappointing first-half earnings report. However, analysts from DZ Bank see better business prospects for the company and decided to boost its recommendation. Stock bounced off the 23.6% retracement of the downward move launched in late-January 2021 and climbed above the 200-session moving average (purple line). Resistance zone at €134.15 (38.2% retracement) is the near-term resistance to watch. Source: xStation5
The Week Ahead
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UK GDP shock drop
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