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European markets trade lower
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DE30 fails to break above 15,310 pts resistance zone
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Daimler sees higher adjusted ROS in Mercedes-Benz unit
European stock markets are trading slightly lower during the final trading session of the week. Solid PMIs from France and Germany triggered a jump in the morning but those gains were later erased. Equities from Austria outperform while Polish and Swiss shares are top laggards.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 jumped above the resistance ranging marked with the 50% retracement of a recent pullback yesterday (15,310 pts). However, the upward move was halted slightly below 61.8% retracement (15,360 pts) and the index plunged back below the aforementioned resistance zone. Move was triggered by reports saying that the Biden administration will push forward with a plan of almost doubling the capital tax rate for wealthy individuals. Upbeat PMIs from Europe provided some fuel for another attempt of breaking above the 15,310 pts zone today but this attempt has failed. Traders should pay attention to this zone as finishing today's trading above it would brighten technical outlook for the index.
Company News
Daimler (DAI.DE) said that it expects full-year adjusted return on sales of 10-12% in the Mercedes-Benz Cars & Vans unit. Previous forecast pointed to an adjusted return on sales of 8-10%. Trucks & Buses unit is seen generating adjusted return on sales of 6-7% in 2021, unchanged from previous guidance. Daimler also said that negative impact from chip shortage may be more severe in Q2 2021 than in Q1 2021.
Analysts' actions
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E.ON (EOAN.DE) upgraded to "buy" at Citi. Price target set at €12
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SAP (SAP.DE) upgraded to "buy" at Bankhaus Metzler. Price target at €146
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Deutsche Wohnen (DWNI.DE) downgraded to "underperform" at Exane. Price target at €43
E.ON (EOAN.DE) launched today's trading with a bullish price gap, following an upgrade the stock has received at Citi. However, shares have pulled back from daily highs and moved below opening price. A point to note is that stock may be set to paint a pin bar pattern at the resistance zone marked with 78.6% retracement. Source: xStation5
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