-
European markets trade near Friday's closing prices
-
DE30 attempts to break above 15,310 pts price zone
-
Volkswagen expects hit from chip shortage in Q2
European stock markets launched today's cash session flat or in some cases slightly higher. Session has been calm so far and major indices from the Old Continent traded in tight ranges around Friday's closing prices so far. Spanish IBEX (SPA35) is European top performer as it trades 0.9% higher. Dutch AEX (NED25) lags, trading almost 0.4% lower.
German IFO index for April was released at 9:00 am BST. Headline business climate index moved from 96.6 in March to 96.8 in April while market expected jump to 97.7 Expectations subindex reached 99.5 (exp. 101.2, prev. 100.3) while Current Assessment subindex came in at 94.1 (exp. 94.4, prev. 93.1). While data missed market's estimates, reading did not show any major changes from the previous month in general.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
DE30 continues to struggle to hold above the 15,310 pts price zone. Index broke above this zone this morning but has pulled back below later on. Pullback was halted at the 50- and 200-period moving average (M30 interval) and now the index is trying to break above the 15,310 pts zone once again. Should DE30 break above it, the next target for bulls can be found at 15,360 pts, where the 61.8% Fibonacci retracement of a recent correction is located.
Company News
According to the Financial Times report, Volkswagen (VOW1.DE) warned managers to prepare for large production delays and halt in the second quarter due to shortages on the global chip market. According to company's executives, chip shortage is the biggest problem Volkswagen faces right now and Q2 may be worse than Q1. Similar remarks were made by Daimler executives last week.
Analyst actions
-
SAP (SAP.DE) rated "buy" at Goldman Sachs. Price target set at €135
-
Continental (CON.DE) rated "buy" at JPMorgan. Price target set at €150
-
Daimler (DAI.DE) rated "buy" at JPMorgan. Price target set at €100
Daimler (DAI.DE) dropped over 7% off a recent post-pandemic high. However, pullback was halted at the short-term upward trendline. Key near-term resistance levels to watch are €74.35 (38.2% retracement) and €75.06 (50% retracement). Stock failed to break above those levels and now is heading towards support at €73. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
