- European indices trade little changed
- DE30 pulls back from important resistance zone
- Evotec slumps 7% after RBC downgrade
European stock market indices are trading little changed at the beginning of a new week. German DAX is down 0.2%, UK FTSE 100 gains 0.1%, French CAC40 drops 0.4% and Dutch AEX trades 0.1% higher. Polish WIG20 is outperformer with 0.6% gain at press time.
Economic calendar for today is empty and there is not a single release of note left. German factory orders data for September was released at 7:00 am GMT today and turned out to be better-than-expected, showing a 0.2% MoM increase instead of an expected 1.1% MoM drop.Final services PMIs from Europe released today came more or less in-line with flash estimates.
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Source: xStation5
German DAX futures (DE30) enjoyed strong gains last week but have run into 15,250 - 15,300 pts resistance zone. The zone is marked with previous previous reactions, 38.2% retracement of the latest downward impulse as well as 200-period moving average (H4 interval). Bulls failed to break above the area and the index is pulling back slightly. Technical setup remains bearish with continuation of downtrend looking likely. Psychological 15,000 pts area is the first support zone watch in case of a deeper pullback.
Company News
Merck KGaA (MRK.DE) is preparing cost cutting plans amid a longer-than-expected downturn in electronic market demand. Company is seeking €60-90 million euros in savings in full-2024 and does not rule out cutting jobs.
According to a Reuters report, Airbus (AIR.DE) delivered 71 aircraft in October, marking an 18% year-over-year increase. Company declined to comment on the Reuters report and will publish official delivery figures on Tuesday and quarterly results on Wednesday.
Analysts' actions
- Evotec (EVT.DE) downgraded to "sector-perform" at RBC. Price target set at €18.60
- BMW (BMW.DE) upgraded to "buy" at Bernstein. Price target set at €110.00
- Puma (PUM.DE) rated "neutral" at Citi. Price target set at €58.00
- K+S (SDF.DE) downgraded to "sell" at UBS. Price target set at €13.00
Evotec (EVT.DE) is dropping 7% today after a downgrade at RBC. Share price is trying to break back below the €16.30 support zone and move back towards recent lows in the €15.55 area. Source: xStation5
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