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Stocks trade mixed ahead of US and Canadian labour market reports
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DE30 dips at the beginning of Friday’s session
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RWE (RWE.DE) may get €2 billion compensation for the German coal exit
Beginning of the European trading session can be seen as mixed. Major stock market indices from the Old Continent launched Friday’s trade higher but gave up gains and swung to negative territory by the end of the first hour of the session.
Promising data from the European industrial sector
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Open account Try demo Download mobile app Download mobile appThe German industrial production data for November released yesterday surprised to the upside with 1.1% MoM increase. Production also increased more than expected in Italy (+0.1% MoM) and France (+0.3% MoM). Spanish data was even better with a 1% MoM increase against an expected advance of 0.2% MoM. The data shows that production slump in Europe may be bottoming out and improvement may be ahead. However, one should keep in mind that YoY figures for Germany and Italy are still deep in the negative territory.
Source: xStation5
DE30 continued to rise yesterday but some downward pressure can be spotted on the index today. The index jumped to 13540 pts over the night but has turned lower after the launch of the cash session. German index bounced off a daily low at 13490 pts and attempts to break back above the 13500 pts handle. Return to intraday highs could hint that another upward impulse is underway. The ATH area below 13600 pts handle remains the nearest resistance level to watch for the time being. Release of the US jobs report at 1:30 pm GMT is likely to be the biggest event of the day and may spur some additional volatility on the equity markets.
DAX members at 9:17 am GMT. Source: Bloomberg
FAZ reports that Volkswagen (VOW1.DE) is buying Diconium, the German software developer. Volkswagen bought 49% stake in the company in 2018 and now wants to buy the remaining part. The acquisition will boost the carmaker's innovation in the digitalization area. Financial details of the transaction were not disclosed by the paper.
According to the Rheinische Post report, RWE (RWE.DE) is close to reaching an agreement with the German Economy Minister that would compensate the company for the national coal exit. RWE could receive €2 billion in compensation and additional money to finance lay-offs related to the matter.
Investors look more favourably at Bayer (BAYN.DE) today after Bloomberg reported that talks to settle glyphosate cases are gathering pace.
Analyst actions
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Duerr (DUE.DE) raised to “buy” from “hold” at Societe Generale. Price target set at €44
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Norma Group (NOEJ.DE) raised to “buy” from “hold” at Societe Generale. Price target set at €52
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E.ON (EOAN.DE) raised to “neutral” from “underperform” at BofA Global Research. Price target set at €10
RWE (RWE.DE) opened with a major upward price gap today. The German utility company surged on news that it may receive a big compensation for the German coal exit. The stock was briefly traded at the fresh 6-year high above €28.80. This hurdle along with support at €27.80 are levels to watch over the near term. Source: xStation5
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