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European stock markets trade higher
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DE30 reaches highest level in a week
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Continental jumps on CEO's upbeat comments
European stock markets trade higher for another day as the recovery from recent declines continues. German DAX climbed to the highest level in a week and trades less than 1% below the upper limit of this month's trading range. Continental can be found among top performing DAX members today after the company's CEO said that he expects full-year operating margin to come in near the upper end of forecast.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 continues to recover from declines that hit the market at the end of the previous week and at the beginning of this one. The German index is trading at the highest level in a week after breaking above the resistance zone marked with 50% retracement of the downward move started in late-November. Key resistance to watch in case bulls continue to push the market higher can be found ranging between 61.8% retracement and 15,800 pts handle. This is also the upper limit of this month's trading range and was tested three times in December already.
Company News
Nikolai Setzer, CEO of Continental (CON.DE), said in an interview with WirtschaftsWoche that he expects full-year adjusted operating margin to come close to the upper end of 5.2-5.6% forecast. Setzer also said that full-year sales will be in-line with forecast range (€32.5-33.0 billion). Executive said that the company had to book €550 million in additional costs due to increased rubber prices. Setzer said that Continental expects semiconductor shortage to ease in the second half of 2022.
Passenger cars unit of Volkswagen (VOW1.DE) plans to spend around €18 billion on new technologies over the next five years. Investments will be made into e-mobility, digitization and hybridization. Ralf Brandstaetter, Volkswagen brand CEO, said that around €3 billion will be spent on digitization of products and processes.
Airbus (AIR.DE) signed an agreement worth €10 billion with the French Armed Forces. Airbus will provide the French army with 169 Cheetah helicopters. Agreement also includes supply of support systems, training and 10-year maintenance.
TAG Immobilien (TEG.DE) agreed to acquire Robyg, Polish residential property company, for €550 million. TAG Immobilien will acquire a 100% stake in Robyg from Bricks Association, controlled by Goldman Sachs and Centerbridge Partners.
Shares of Continental (CON.DE) rally today, supported by upbeat comments from the company's CEO. Continental is one of the best performing DAX members today. Stock managed to climb back above the support zone at 50% retracement of the post-pandemic recovery move. The nearest resistance zone to watch can be found ranging between €100.00 handle and 38.2% retracement. Source: xStation5
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