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European markets trade lower
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DE30 recovered from daily lows at 13,800 pts
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Continental to recommend not paying dividend for 2020
Stock markets in Europe are trading lower following a downbeat Asian session. While the majority of the European blue chips indices are down on the day, benchmarks managed to recover off the daily lows. DE30 is trading around 100 points above a daily low reach near 13,800 pts at the beginning of the cash session.
According to the Bild report, German Chancellor Angela Merkel is in favour of adopting a 4-stage process of lifting coronavirus restrictions. No details of the process were offered by the report as they are expected to be worked out in the coming days. March 7 is the deadline for current German restrictions so an announcement on easing or extension is likely to come in the second half of this week.
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Source: xStation5
DE30 slumped at the beginning of today's cash trading and reached a daily low in the 13,800 pts area - the lowest level since February 2. However, after an initial sell-off, the index started to regain ground. Price climbed back above the support zone at 13,845 pts and continued recovery. DE30 is trading over 100 point above daily lows at press time. The zone ranging between 13,950 pts and 23.6% retracement of the upward is the near-term resistance to watch ahead. In case we see a break above this hurdle, attention will shift to the 200-hour moving average (purple line, 14,000 pts area) that has halted upward moves at the end of the previous week and during today's Asian session.
Company News
Continental (CON.DE) said that because it has generated a net loss for 2020, it will propose not to pay a dividend for the year. However, the company said that it remains committed to its mid-term dividend policy of paying out 15-30% of net income as dividend.
According to Automobilwoche, Volkswagen (VOW1.DE) will most likely make a decision on the Bugatti brand in the first half of 2021. German carmaker is looking for ways to develop the brand and sale to Rimac Automobili is one of the options on the table.
Deutsche Bank (DBK.DE) was expected to pay out over €2 billion in bonuses for 2020 to reward employees for solid performance of the Bank's trading unit. It would mark over a 30% increase in bonus pool compared to 2019. However, European Central Bank criticized German lender over the size of the pool and it will most likely be scaled down.
European Commission approved acquisition of Varian, the US radiation oncology treatment company, by Siemens Healthineers (SHL.DE). Deal is worth $16.4 billion and will position Siemens Healthineers among global leaders in the cancer therapy business. In order to win approval, Siemens Heathineers pledge to make medical imaging and radiotherapy products compatible with products developed by its rivals.
Deutsche Bank (DBK.DE) is one of a few DAX members trading higher today. Market welcomed reports saying that the 2020 bonus pool will be scaled down. Stock is attempting to break above the resistance zone at €9.70, marked with local highs from the end of November and the beginning of December. Source: xStation5
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