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European markets recover from yesterday's sell-off
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DE30 climbs above 13,800 pts
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Linde announces share buybacks and dividend increase
European markets are recovering from yesterday's declines today. DAX managed to climb back above 13,800 pts and is trading 1.4% higher today. Strong gains can be spotted on the other European indices as well. Italian Prime Minister Conte is expected to offer resignation to President Matarella at 11:00 am GMT but so far markets are ignoring political risks. It is expected that Matarella will ask Conte to try to form a new ruling coalition and snap elections may be avoided.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 has plunged yesterday and more or less realized the range of a decline from the head and shoulders pattern. Downward movement was stopped at the zone ranging below 13,600 pts and a strong rally occurred at the beginning of a European session. DE30 managed to climb back above the zone at 13,800 pts marked by 38.2% retracement, 50-hour moving average (green line) and previous price reactions. Now investors' attention shifts to the resistance area at 13,875 pts, marked with 200-hour moving average (purple line) and previous price reactions. Today's economic calendar is almost empty and Conte's resignation is unlikely to provide additional volatility on the European stock markets.
Company News
Linde (LIN.DE) is a top performing DAX member today. Company announced a new share buyback programme worth up to $5 billion. Linde may acquire up to 15% of its outstanding shares between February 1, 2021 and July 31, 2023. Company also announced that it will boost its quarterly dividend by 10%, to $1.06 per share.
Frank Appel, CEO of Deutsche Post (DPW.DE), said that there is an air-freight capacity shortage. However, Appel said that it is beneficial for the company as it remains competitive due to its own fleet of 250 air-freighters. Company is also involved in coronavirus vaccine logistics and has already flown 50 airplanes with vaccines across Europe.
According to the Bloomberg report, SAP (SAP.DE) is holding talks over acquisition of Signavio, German start-up specializing in enterprise software. Acquisition could help SAP boost its cloud offer. Deal could be valued at around €1.2 billion.
Linde (LIN.DE) jumps following announcement of dividend increase and a launch of new share buyback programme. Share price bounce off the upward trendline near €205 support zone. The near-term resistance to watch can be found in the €212.50 area and is marked with previous price reactions as well as the 50-session moving average (green line) while major resistance zone ranges above €220 handle. Source: xStation5
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