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European markets trade lower
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DE30 pulls back after test of 15,635 pts area
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Volkswagen to exit combustion engine production in Europe by 2035
European stock markets are trading lower at the beginning of the first trading session of the week. Most major indices from the Western Europe trade 0.2-0.5% lower. However, the Spanish IBEX (SPA35) is an outlier trading over 1.3% lower at press time. Stocks from Russia, Portugal and Switzerland post small gains.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is struggling to fully recover from the post-FOMC market sell-off. German index attempted to break above the resistance zone at 15,635 pts last week but failed. Similar story played out this morning with DE30 jumping towards 15,635 pts and pulling back later on. Near-term support to watch can be found in the 15,330 pts area. Note that there is no crucial data scheduled for release today therefore the session ahead may be slightly muted. Fed and ECB members will deliver speeches in the afternoon but they have been cautious last week not to move markets too much. Having said that, DE30 may be set to range trade between 15,330 pts and 15,635 pts until the later part of the week.
Company News
Volkswagen (VOW1.DE) announced that three manufacturing segments in Mexico, that were halted due to semiconductor shortages, are expected to resume operations this week and during July. In other news, it was reported that the German carmaker plans to exit production of combustion engines in Europe by 2035 while production of this type of engines in the United States and China is expected to occur later.
According to the CFO of Daimler (DAI.DE), the company plans to spin off its truck business by the end of 2021.
BASF (BAS.DE) announced that it has reached an agreement with Vattenfall over Hollandse Kust Zuid wind farm. Under the terms of the agreement, BASF will acquire a 49.5% stake in the wind far for €300 million. However, including BASF's contribution to the wind farm's construction, the company's total commitment is around €1.6 billion. Construction of the wind farm will begin in July 2021 and is expected to become fully operational in 2023. Transaction between BASF and Vattenfall is expected to close in Q4 2021.
BASF (BAS.DE) is pulling back today following a failed attempt of breaking above the resistance zone ranging around €66.25. Note that the stock has painted a lower high in the current short-term downtrend structure. Near-term support to watch is marked with recent local low at around €64. Source: xStation5
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