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European indices trade mixed
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DE30 pulls back and retests 14,400 pts support
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Deutsche Bank offices raided by prosecutors
Stock markets in Europe are trading mixed on Wednesday. Indices from Germany, Italy and Portugal trade higher while UK, Dutch and Spanish equities drop. Releases of final manufacturing PMI data for May did not have an impact on the markets, as expected. Today's calendar includes some interesting releases, like ISM or BoC decision, but those are more likely to affect US and Canadian assets.
Source: xStation5
Following a break above a 38.2% retracement of the post-pandemic recovery move (144,0 pts area), DE30 bulls began to struggle. Sellers took over and launched a pull back this week. As a result, index is currently testing the aforementioned retracement, this time as a support. A successful defense of this area could hint that an upward move is about to resume and may move towards the next important resistance zone that is stretching above the 15,000 pts mark.
Company News
Merck KGaA (MRK.DE) announced that it will set up a semiconductor base in Zhangjiagang, China. The site will house production plants for thin film materials and specialty gases as well as warehouses. Merck said that it will be its biggest investment in the country but specific financial terms were not disclosed.
German offices of Deutsche Bank (DBK.DE) and its subsidiary asset manager DWS were raided by prosecutors as part of an investment fraud investigation. Investigation relates to 'greenwashing', a process of selling products or services deemed to be environmentally-friendly while they are not. Investigation was launched after a whistleblower report. CEO of DWS resigned following the raid.
Analysts' actions
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Zalando (ZAL.DE) was downgraded to "equal-weight" at Barclays. Price target set at €48.00
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Krones (KRN.DE) rated "outperform" at Exane. Price target set at €104.00
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GEA Group (G1A.DE) rated "neutral" at Exane. Price target set at €40.00
Shares of Deutsche Bank (DBK.DE) pulled back slightly yesterday after news on office raids hit the markets. However, the drop was not significant. Stock launched today's trading higher and attempts to break above a key near-term resistance zone marked with the 200-session moving average at H4 interval and 38.2% retracement of the March upward move. Source: xStation5
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