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European indices rally following gains on Wall Street yesterday
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DE30 tests resistance zone at 15,725 pts
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Australian Qantas to place a large order with Airbus
European stock markets surged on Thursday following a post-FOMC rally on Wall Street yesterday. Gains can be spotted all across the Old Continent with Russian indices being top performers and trading around 3% higher on the day. Blue chips indices from Germany, France and the Netherlands are all gaining 1% or more on the day. European Central Bank is set to announce monetary policy decision in the early afternoon (12:45 pm GMT) but the event is not expected to trigger major moves on the equity markets.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appGerman DAX trades around 1.5% higher on the day. Taking a look at the DE30 (DAX futures) chart at the H4 interval we can see that the index rallied following the FOMC meeting yesterday. Index tested resistance zone at 38.2% retracement of the October-November upward impulse in the 15,725 pts area this morning but has failed to break above. A long upper wick of the most recent candlestick looks worrying as it suggests that buyers may not have enough steam to deliver a break above this hurdle. Recent breakouts above this zone were rather short-lived and were halted at the 200-period moving average in the 15,800 pts area (purple line). This is the level to watch in case the index attempts another break above 15,725 pts.
Company News
Australian carrier Qantas announced that it will replace Boeing 737-800 jets in its domestic fleet with A320neo and A220 jets from Airbus (AIR.DE). Order is expected to be placed by the end of Qantas' fiscal-2022 (30 June 2022) after receiving approval from the Board. Order will consist of 40 firm purchases commitments and rights to purchase another 94 aircraft. First deliveries are expected in the first half of fiscal-2024 (second half of calendar 2023). Airbus is one of the best performing stocks in the DAX index today.
Share price of Metro (B4B.DE) is dropping today after the company announced that it will not pay a dividend for fiscal-2021. Metro reported a €56 million loss from continuing operations for the year ended September 30, 2021. Sales dropped 3.3% YoY to €24.77 billion.
Deutsche Boerse (DB1.DE) announced that it has completed acquisition of a majority stake in Crypto Finance.
Analysts' actions
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Fresenius (FRE.DE) rated "buy" at Bankhaus Metzler. Price target set at €45.00
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Carl Zeiss Meditec (AFX.DE) upgraded to "hold" at HSBC. Price target set at €184.00
Airbus (AIR.DE) is trading higher today following news of a big order from Australian carrier Qantas. Stock is testing the price zone at 23.6% retracement of the post-pandemic recovery move. Failure to climb back above this zone may see the stock pullback towards recent local lows or even towards a major price in the €93.00 area. This support is strengthened by the 38.2% retracement and the lower limit of the Overbalance structure. Source: xStation5
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