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European markets trade higher
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DE30 breaks above 13,300 pts
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Volkswagen CEO wins backing from Supervisory Board
European markets opened more or less flat today but have caught a bid in the first hour of trading. German DAX and Dutch AEX are trading 0.7% higher while French CAC gains 0.5%. Italian and UK blue chips indices advance around 0.2% while Spanish IBEX is a laggard as it drops 0.2%.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 bounced off the 13,200 pts area ahead of today's European session open and the upward move accelerated following the opening of the cash trading. The German index managed to break above yesterday's high marked by the 61.8% retracement of a downward move started on December 9. A pullback can be observed at press time at lower interval (M30) and one cannot rule out a retest of the aforementioned zone at 61.8% retracement (13,280 pts area). Should we see a resumption of the upward move, the near-term resistance zone to watch can be found at a 78.6% retracement (13,360 pts area).
DAX members at 10:23 am GMT. Source: Bloomberg
Company News
Volkswagen (VOW1.DE) is a top performing stock in German DAX today. Company's Supervisory Board endorsed Herbert Diess, company's CEO, who has been calling for a broader overhaul of the German carmaker. Apart from that, CFO of Audi was named CFO of the whole Volkswagen Group. Board also gave Diess a green light to strike a deal with labor unions aimed at 5% fixed cost reduction by 2023.
Deutsche Wohnen (DWNI.DE) has sold 116 houses as well as some land in Kreuzberg district in Berlin. Financial terms of the sale were not disclosed.
Allianz (ALV.DE) bought a majority stake in BBVA Seguros Generales unit from BBVA Seguros. Deal amounted to around €274 million. Allianz may pay an additional 100 million depending on the performance of the unit.
RWE (RWE.DE) sold a majority stake in its US wind farm to Algonquin Power Utilities. German utility company sold a 51% stake in a wind farm project in Texas to the Canadian firm for $600 million. RWE will continue to operate the wind farm. Company plans to invest proceeds into new renewables projects in an attempt to become carbon neutral by 2040.
Deutsche Wohnen (DWNI.DE) managed to finish a short-term downward trend from November following a failure to break below the 200-session moving average (purple line). Share price bounced and set a higher local high, breaking the downtrend structure. Stock is testing a resistance zone ranging between €43 handle and 50% retracement zone that is additionally strengthened by the 50-session moving average (green line). Source: xStation5
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