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European markets trade higher at the beginning of a new week
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DAX reached 2-month high at 13,300 pts
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Deutsche Bank (DBK.DE) plans to boost its presence in digital payments market
European stock markets are trading higher thanks to a solid PMI data from Germany as well as upbeat results of a coronavirus vaccine developed by AstraZeneca. German DAX (DE30) trades around 1% above Friday's close while Polish WIG20 (W20) gains 2% and is a top mover from the Old Continent.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 made a small jump on the back of upbeat coronavirus vaccine news from AstraZeneca today. Upward move was later extended following a better-than-expected PMI release from Germany. DE30 tested 13,300 pts setting a new 2-month high. However, part of the gains was later erased. Should the index stay above the 13,200-13,250 pts price zone, an attack on post-pandemic highs at around 13,450 pts could be on the cards. Range of the breakout from a triangle pattern even points to an upward move towards 13,600 pts area. On the other hand, should we see a pullback in the later part of the day, a big pin bar pattern would be painted on the aforementioned zone, which could herald a deeper correction. In such a scenario the first near-term support to watch is a trendline serving as a lower limit of the triangle pattern (13,075 pts area at the moment).
Company News
Deutsche Bank (DBK.DE) is one of DAX top movers today. According to a Financial Times report, the German lender plans to boost its position on the European digital payments market. Deutsche Bank may try to expand in the field through acquisitions. Small payments companies that struggle to meet tougher regulatory requirements could be preferred targets.
Siemens Mobility, a division of Siemens (SIE.DE), teamed up with Deutsche Bahn to develop hydrogen fuel cell trains and a filling station. Trials are expected to take place in 2024 and the goal is to replace diesel engines from local rail networks in Germany. Decarbonisation of rail transport is one of the long-term goals of the European Union climate agenda. Cost of a single train will stand between €5 and €10 million.
HelloFresh (HFG.DE) struck a deal to acquire Factor75, the US company. Factor75 is a provider of ready, fresh meals. Deal is valued at $277 million with $177 million payable on the close of the transaction and the remaining $100 million being conditioned on the performance of the acquired company.
DAX members after the first hour of cash session. Source: Bloomberg
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