DE30: European indices start new week higher

• European markets trade higher on Monday

• DE30 stays above short-term upward trendline

• Volkswagen will offer partial and early retirement to some employees

Blue chips indices from Europe are trading higher during the first half of Monday's session. The session has been quite calm so far with elevated volatility being present only at the start of today's trading. Economic calendar is almost empty today. However, Biden will deliver remarks on implementation of the economic relief package at 5:45 pm GMT and it may result in some more action on the market.

Angela Merkel's CDU party has suffered a defeat in regional elections on Sunday. According to exit polls, Green Party is expected to win elections in Baden-Wurttemberg while Social Democrats (SPD) are seen winning elections in Rhineland-Palatinate. Results were not entirely unexpected as Greens and SPD simply retained their lead in the aforementioned states. However, it was the worst showing for Merkel's party in those regions in history. Angela Merkel is set to retire from politics by the end of this year after 17 years in office. A string of regional elections throughout the year as well as federal parliamentary elections in fall are expected to be her final political showdowns.

Source: xStation5

Situation on DE30 market looks to be little changed. In spite of some overnight weakness, the German index has managed to stay above the upward trendline. Index recovered from a daily low near 14,485 pts and jumped back above 14,500 pts. The near-term resistance zone to watch ranges around an all-time high in the 14,600 pts area. The near-term support is the aforementioned upward trendline. Unless we see a break through either of these limits, DE30 may remain stuck in an ascending pattern formation. The pattern is usually seen as a continuation pattern therefore traders should look out for bullish breakouts above 14,600 pts area.

Company News

Volkswagen (VOW3.DE) said that it has agreed with the works council on measures aimed at reducing the workforce. Volkswagen will offer partial retirement options to employees born 1961-1964 and early retirement options to employees born 1956-1960. German carmaker expects up to 900 employees to sign for early retirement and thousands of employees to choose partial retirement solutions. Hiring will remain frozen outside of electrification, digitization and battery development units.

Christian Sewing, CEO of Deutsche Bank (DBK.DE), has been paid a total of €7.4 million in 2020, an increase of 46% compared to 2019 pay. Total bonus pool at the Bank increased by almost 30% in 2020.

Siemens (SIE.DE) faces renewed criticism from environmental organizations in Australia. Over 120 thousand people signed a petition calling for Siemens CEO to drop agreement with Adani Enterprise. Two companies are working together on large coal mine projects and some of the environmental rules were breached in the process.

Siemens (SIE.DE) made another failed attempt of breaking above the €136.50 resistance zone last week. Subsequent pullback on Friday has pushed the stock lower, but shares seem to be recovering today. Stock bounced off the 50-hour moving average (green line) in the morning and jumped towards the aforementioned €136.50 resistance. Source: xStation5