Summary:
- European equities push higher on the final trading day of the week
- DAX (DE30) tries to climb back into the upward channel
- Paul Achleitner received support from shareholders during the Annual General Meeting
European stock markets shrugged off trade concerns on the final trading day of the week and launched the session higher. Italian equities lead higher being followed by Dutch and Belgian peers. Austrian ATX index is the worst performing blue chips index from Europe as it gains “only” 0.5% at press time. Carmakers are gaining the most while travel companies are the biggest laggards.
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DE30 broke below the lower limit of the upward channel yesterday and plummeted towards the 11920 pts handle. Bulls try to recoup losses on Friday morning with the index climbing back to the resistance zone ranging 12035-12055 pts. Note that a few points higher one can find 33-period moving average (H4 interval) as well as the aforementioned lower limit of the channel. This combination should serve as the key resistance over the short term. Source: xStation5
Deutsche Bank AGM is over but Achleitner is still in the office
Deutsche Bank (DBK.DE) held Annual General Meeting yesterday. The event was particularly important as there was a lot of discussion about potential ousting of the Chairman, Paul Achleitner. Voices of dissatisfaction echoed throughout the Meeting but at the end Achleitner retained his job. Achleitner secured support of 72% shareholders, solid result but lower than last year’s 84%. On the other hand, investors were offered more assurances that the turnaround is coming and that the management is ready to make significant cutbacks. However, a few shareholders warned that they will withdraw support for both Achleitner and CEO Sewing in case the Bank further struggles to improve results.
DAX members at 9:51 am BST. Source: xStation5
Other company news
Vonovia (VNA.DE) plans to acquire the remaining share of Victoria Park, the Swedish property management company. Later on the German company plans to delist the company.
According to the FAZ report, the Deutsche Post (DPW.DE) plans to raise standard letter rate from €0.70 to €0.80. Apart from that, other types of postage are also said to experience major increases. Nevertheless, the report has not been confirmed by the company yet and FAZ declined to name sources of information.
Allianz (ALV.DE) has called for a redemption of 3.25% notes with a notional amount of 500 million CHF. Yesterday the insurer financial strength rating was reaffirmed by Fitch at AA with outlook remaining stable.
Deutsche Post (DPW.DE) share price had a tough time in May so far. Decline of around 13% brought the stock below relevant support zone ranging around the 23.6% Fibo level of the downward move started at the beginning of the previous year. The €25.50 handle saw some price action back in the second half of 2015 therefore buyers may become more active there. Source: xStation5
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