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European markets trade mixed ahead of FOMC minutes
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DE30 drops below short-term trendline
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Daimler's Mercedes-Benz Q1 sales jumped 60% in China
European stock markets trade more or less flat on Wednesday as investors are awaiting clues from FOMC minutes and Biden's speech in the evening. German DAX (DE30) trades flat, French CAC40 (FRA40) is trading slightly higher while Dutch AEX (NED25), Spanish IBEX (SPA35) and Italian FTSE MIB (ITA40) trade slightly lower. UK FTSE 100 is the outperformer as it trades 0.6% higher.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 halted the upward move after reaching a fresh all-time high at around 15,340 pts yesterday. The index started to pull back later on and dropped below the short-term upward trendline. Near-term support level to watch can be found at 15,200 pts. The area is marked with the lower limit of the local market geometry and has managed to halt decline yesterday. In case it is not enough to fend off the bears, attention may shift towards local support levels at 23.6% and 38.2% retracements of recent upward impulse at 15,120 and 15,000 pts respectively. Trading may be slightly muted throughout the day as investors seem to be in wait-and-see mode ahead of FOMC minutes release. If the document reveals that there was a discussion on quicker policy tightening, equities may find themselves under pressure.
Company News
Daimler (DAI.DE) said that Mercedes-Benz car sales jumped 22% YoY in Q1 2021, to 581,720 units. Increase was driven by a 60% jump in Chinese sales. European sales increased 1.8% while North American sales jumped 12.5%. Plug-in hybrids and full electric cars made up 10% of global sales and 25% of European sales. Daimler said that chip shortages affected deliveries in the first quarter of 2021 and will affect sales in the second quarter.
Fitch affirmed long-term issuer default ratings of Fresenius SE (FRE.DE) and Fresenius Medical (FME.DE) at "BBB-" with stable outlook.
Analysts' actions
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Deutsche Bank (DBK.DE) upgraded to "hold" at Santander. Price target set at €10.93
DAX members at 10:33 am BST. Source: Bloomberg
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