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European stocks trade higher
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DE30 tested 15,900 pts but failed
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Lufthansa plans to boost capacity for business travellers
Majority of the blue chips indices from Europe trade slightly higher today. Dovish speech from Powell on Friday provided more fuel for equity bulls. There aren't any major data releases scheduled for today that could move stock markets. German CPI data for August at 1:00 pm BST is noteworthy, but it is likely to have a bigger impact on FX markets rather than equity markets.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appPowell stuck to his dovish narrative during his speech at Jackson Hole on Friday. This has given fresh fuel for equity bulls to push indices higher, and upbeat moods extended into a new week. DE30 has managed to break above the upper limit of the wedge pattern and tested 15,900 pts area at the start of today's trading. While buyers were unable to deliver a break above it yet, the index remains close. In case current pause turns into pullback, the near-term support to watch can be found in the 15,850 pts area, where the earlier-broken downward trendline can also be found. The closest major resistance area ranges around 15,935 pts mark.
Company News
According to a Reuters report, Lufthansa (LHA.DE) plans to increase the number of flights as well as improve catering services on flight in an attempt to win back business customers. Airline said that frequency of flights on popular connections will be increased, starting from September 1, 2021. Christian Foerster, board member of Lufthansa, also said that the company is prepared for a possible surge in demand once restrictions on travels to and from the United States are lifted.
Volkswagen (VOW1.DE) confirmed that it plans to produce and sell ID.3 EV model in China. Moreover, German company said that the model will be launched in the country as soon as this year.
Reports saying that Lufthansa plans to boost numbers of flights offered to business travellers did not change sentiment on the stock. Shares of Lufthansa (LHA.DE) are trading lower today. In case downbeat moods persist, the support zone at 78.6% retracement (€8.15 area) may be in danger. Source: xStation5
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