DE30 recovers and jumps back above 9,500 pts

• European stock market rise slightly on Thursday

• DE30 recovers from overnight dip

• Trading volumes on Deutsche Boerse (DB1.DE) skyrocket in March

Major stock market indices from Europe are enjoying minor gains on Thursday. As quarter-end rebalancing has already finished, the stock market lost an important source of demand. Having said that, indices may struggle to rise as they did in the previous week. Some data from the US will be released throughout the afternoon but attention is primarily on jobless claims data (1:30 pm GMT). Note that the market overlooked very poor reading last week and rallied.

Source: xStation5

DE30 has been trading in a very strong downward move yesterday. The index pulled back from the upper limit of the trading range and broke below the lower limit of the range. Low was reached at 9,300 pts. However, recovery can be spotted today and the index broke back above the price zone at 9,500 pts. The index is struggling for direction after a morning surge and may continue to do so until US jobless claims data is released (1:30 pm GMT). The area in which DE30 is trading right now (9,550-9,570 pts) has seen some reactions and price reversals earlier this week and the week before therefore breaking higher would be the first signal for bulls. Nevertheless, given proximity of the lower limit of the range, risk of breaking below it remains high.

Deutsche Boerse (DB1.DE) failed to break above the 50% Fibo level of the February-March slump (€126). The stock is pulling back and tests the 38.2% Fibo level at €118. Should it succeed with breaking lower, the next target could be the €111.50 swing level, that saw numerous price reactions in 2018 and 2019. Very high turnovers for March are likely to boost company's Q1 earnings through higher fees and commissions. Source: xStation5

According to the Handelsblatt report, executives of top German carmakers - Daimler (DAI.DE), Volkswagen (VOW3.DE) and BMW (BMW.DE) - held a call with Angela Merkel yesterday. The discussion centered on how to get the German automotive sector out of the ongoing halt. However, reaching the goal may be challenging with disruptions at both supply-side and demand-side.

Deutsche Boerse (DB1.DE) released data on cash market trading volumes in March. Cash markets of Deutsche Boerse generated a turnover of €300.7 billion, marking a massive jump from €130.3 billion recorded in March 2019. This should not come as a surprise as markets were much more volatile in March 2020 than in March 2019. Equities accounted for €256.8 billion while ETFs accounted for €39 billion. SAP (SAP.DE) was the most actively traded stock from the DAX index with turnover of €15.8 billion while Commerzbank (CBK.DE) was the most actively traded MDAX member (turnover of €1.8 billion). HelloFresh (HFG.DE) held the top spot among SDAX members with turnover of €570 million.

Lufthansa (LHA.DE) has put around 87,000 workers on a part-time working schedule. The decision comes as demand for airline tickets cratered and the German carrier looks for ways to cut costs. Note that Lufthansa employees around 135-140 thousand people worldwide therefore the move affects more than a half of its employees.

Volkswagen (VOW3.DE) touched €120 handle last week but was unable to hold onto gains. The stock is pulling back this week in spite opening higher after the weekend. The key support to watch is marked by 2015 lows (€91). However, as carmakers struggle with supply and demand issues simultaneously, any recovery looks questionable. Source: xStation5