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European indices trade higher on Tuesday
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DE30 bounces after test of 15,000 pts handle
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Siemens Healthineers to supply 50 million rapid Covid test to the United States
European stock markets are trading higher on Tuesday, in spite of a downbeat Asian session. Majority of blue chips indices from Western Europe trade around 1% higher on the day while Russian and Polish indices outperform trading around 2% higher.
German IFO indices for January were released today at 9:00 am GMT. Headline business climate index jumped from 94.8 in December (revised upward from 94.7) to 95.7 in January (exp. 94.7). Current assessment subindex dropped from 96.9 to 96.1 (exp. 96.1) while expectations subindex jumped from 92.6 to 95.2 (exp. 93.0). While a beat in headline and expectation indices can be seen as a positive, note from IFO economists hints that inflationary pressures are not easing yet. Klaus Wohlrabe, IFO economist, said that at least half of German industrial companies plan further price increases.
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Source: xStation5
DE30 index launched today's trading higher following a stunning reversal on Wall Street yesterday and in spite of a downbeat trading in Asia today. The index dipped at the beginning of cash trading but decline was halted in the 15,000 pts area and DE30 started to recover. The index climbed back above the 15,080 pts price zone that acted as a kind of floor for the index over the past few months. The nearest important resistance zone to watch can be found in the 15,400 pts area. While the economic calendar for today is quite light, traders should be on guard following the Wall Street session open (2:30 pm GMT) as that is when major price moves started in the previous days.
Company News
Volkswagen (VOW1.DE) partnered with Robert Bosch GmbH, supplier of automotive parts, to speed up development of self-driving vehicles. Companies aim to have some self-driving solutions ready and available for drivers as soon as next year, like self-driving in urban conditions or on freeways.
Siemens Healthineers (SHL.DE) was awarded a contract from the US Defense Department for 50 million rapid Covid-19 tests. Tests supplied by Siemens Healthineers will be OTC at-home test kits. Contract is a part of Biden's push to provide Americans with 1 billion free at-home test kits. Financial details of the contract were not disclosed.
Volkswagen (VOW1.DE) is trading slightly higher today. Stock tested 50% retracement of the upward impulse started in November 2020 yesterday but failed to break above. The nearest price zone to watch in case stock continues to recover can be found in the €260 area. On the other hand, should bears regain control over the market and stock resumes slide, lower limit of the downward channel in the €230 area can be considered the nearest key support. Source: xStation5
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