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European markets trade higher
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DE30 pulls back after reach new all-time high
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European Commission will look into German state aid for RWE
European indices trade higher.. Most of the blue chips indices from Western Europe have already fully recovered from last week's decline. German DAX has even managed to reach a fresh all-time high above 14,180 pts. Yesterday's comments from ECB members were helpful as they hinted that the Bank will act to counter rising yields.
US ADP employment data at 1:15 pm GMT and non-manufacturing ISM at 3:00 pm GMT are two key releases scheduled for today and may result in elevated short-term volatility on stock indices.
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DE30 managed to break above its previous all-time high. Index jumped above 14,180 pts and reached a daily high at 14,196 pts. However, bulls failed to maintain momentum and the index pulled back to the 14,150 pts area. In case we see a continuation of a pullback, the first major support to watch can be found at the 14,070 pts zone. Breaking above the 14,150-14,180 pts zone may boost bullish sentiment. Source: xStation5
Company News
European Commission said that it will investigate German state aid to operators lignite mines and power plants. Germany wants to support RWE (RWE.DE) and LEAG with €4.35 billion to encourage speeding up of coal exit and compensating for lost profits. European Commission will examine whether payouts are proportionate to lost profits and whether state aid does not break EU rules.
Delivery Hero (DHER.DE) said that it has closed the Woowa Brothers deal and begins a strategic partnership to boost operations in Asia.
Cancom (COK.DE) won a major contract from an EU institution. Contract maximum value is €440 million and maximum contract term is 6 years. German IT service management company will help with a large European data center project. Shares are trading 4% higher today.
Shares of RWE (RWE.DE) have dropped below the support zone at €31.75, marked by the 78.6% retracement of the early-2020 decline. Stock is trading around 20% below its 2021 high meaning that it is almost in bear market territory. The nearest support can be found at €30, a local low from September 2020. Source: xStation5
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