DE30 eases after testing 12,000 pts mark

• Stocks jump after China denies halt of soy purchases

• DE30 eases after test of 12,000 pts

• Lufthansa (LHA.DE) surges as state aid draws near

DAX is rallying around 3% today! However, this is mostly because there was no session in Germany yesterday and the cash index is "catching up" with the rest of the World. Moods in the other parts of the Old Continent are upbeat as well after China denied reports that it plans to halt soybean purchases from the United States.

However, one should keep in mind that riots in the United States did not ease after Trump's threat to deploy more military. Actually, media reports suggest that riots were re-ignited after Trump's statement. As the situation remains violent, risk of imposing martial law remains high and it could be a wake-up call for the markets.

Source: xStation5

DE30 bounced over 50% off mid-March low and broke above another important price zone this week (11,875 pts area). The index tested the 12,000 pts mark but has pulled back slightly since. Note that 200-session moving average (purple line) can be found just slightly higher at 12,080 pts. Overall, the area stretching between 12,000 pts and the 200-session moving average could act as an important resistance now. However, keep in mind that markets are ignoring all the bad news recently and may ignore technical levels as well. Should it be so, bulls may aim for the 78.6% retracement of the last major sell-off.

DAX members at 9:58 am BST. Source: Bloomberg

Lufthansa (LHA.DE) is surging today as the company agreed to some concessions in order to win backing for a state rescue deal. The German carrier agreed to hand over some of its operating slots in major hubs. The Supervisory Board of Lufthansa approved the deal yesterday. Handelsblatt reports that Lufthansa (LHA.DE) shareholders are likely to vote on a state rescue on June 25.

Volkswagen (VOW3.DE) plans to invest as much as €2.1 billion in EV operations in China. In other news, it was announced that Volkswagen's factory in Mexico will reopen on June 15.

BASF (BAS.DE) announced that the construction of a new chemical plant in the Chinese Guangdong province has begun. The plant will be involved in production of engineering plastics and thermoplastic polyurethane.

BaFin, the German financial watchdog, said on Friday that it is investigating Markus Braun, CEO of Wirecard (WDI.DE). Investigation relates to share purchases made some time prior to the publication of Wirecard's annual report. Regulator is examining whether those purchases violated insider-trading rules or not.

Wirecard (WDI.DE) managed to almost completely recover from the February-March sell-off. However, the stock plunged once again on company-related issues and broke to a new YTD low! Wirecard shares try to recover but a price zone at €100 could turn to be a tough resistance. Source: xStation5