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European markets trade higher on Tuesday
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DE30 tests zone at 13,420 pts but fails
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EasyJet delay deliveries of Airbus jets
European stock markets rebound on Tuesday following yesterday's declines. Major indices from the Old Continent over 1% higher. UK FTSE 100 (UK100) is a laggard as it gains only 0.4%. The US economic relief package was approved by the US Congress and now awaits signature from President Trump. When it comes to European politics, the situation is unchanged - Brexit deal was not reached and the EU has rejected the latest compromise offer on fisheries presented by the United Kingdom.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is making a recovery move today following heavy losses booked yesterday. The index found a support at the upward trendline yesterday and started to recoup declines. DE30 failed to break above the resistance zone ranging below 13,420 pts overnight and started to move lower throughout the Asian session. However, it has managed to bounce off the support zone at 13,250 pts at the beginning of the European trading and has once again rallied towards the aforementioned resistance. So far, no break higher occurred and the index may remain locked in the 13,250-13,420 pts trading range until a bigger catalyst surfaces. Should we see a break above the upper limit of the range, post-pandemic highs near 127.2% exterior retracement of October's correction are the first target for bulls.
DAX members at 10:14 am GMT. Source: Bloomberg
Company News
A new strain of the coronavirus begins to disrupt trade flows. DHL, subsidiary of the Deutsche Post (DPW.DE) announced that it will temporarily halt parcel deliveries to the United Kingdom due to newly imposed restrictions. Similar move was made by the Royal Mail, the UK postal service company, with regard to packages shipped to mainland Europe.
Volkswagen (VOW1.DE) reached an agreement with the labour union at the MAN Energy Solutions unit. The pact assumes restructuring and significant cost reductions until 2023. Company signalled that it plans to retain the unit for at least 4 years after it struggled to sell it in 2019 and early-2020.
EasyJet decided to defer deliveries of Airbus (AIR.DE) planes. The UK low-cost airline will not take any Airbus jets in 2021 while 22 aircrafts scheduled for delivery in 2022-2024 period were delayed to 2027-2028.
Airbus (AIR.DE) took a hit yesterday amid virus panic but managed to find support at the swing level marked by local high from early-June and the 38.2% retracement of the early-year sell-off. Stock is trading slightly lower on the day following downbeat corporate news relating to aircraft deliveries. Should we see a break back below the support at 38.2% retracement, things may turn ugly. However, until then, investors may perceive ongoing downward move as a correction. Source: xStation5
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