DE30 recovers and reaches fresh post-pandemic high

• EU recovery fund talks to resume at 3:00 pm BST

• DE30 recovers and tests 13,000 pts

• German parliament committee to look into Wirecard next week

European stock market indices dipped shortly after the launch of the cash session but managed to recover later on. Majority of blue chip indices from the Old Continent trade higher along with the US futures. EU summit on recovery fund has not resulted in an agreement yet but talks are set to resume later today.

European leaders look for agreement

European summit on the EU recovery fund was scheduled for two days - Friday and Saturday. However, as leaders of European countries were unable to find common ground in that time and talks extended onto Sunday. Progress is said to be made but another break was called and negotiations will resume today at 3:00 pm BST. So-called frugal countries want a bigger portion of the €750 billion stimulus to be paid out as loans rather than grants, meaning that recipients will have to repay them. Original proposal called for €500 billion in grants and €250 billion in loans. However, recent media reports claim that frugals are willing to back a proposal with €390 billion in loans and €360 billion in grants.

Source: xStation5

DE30 plunged at the beginning of today's cash session and tested support zone at 12,800 pts. However, the index managed to recoup loss and has surged around 200 pts off the daily lows. The index printed a fresh post-pandemic high and is testing the psychological resistance at 13,000 pts. This area saw numerous price reactions in the late-2019 and early-2020 and is the major obstacle blocking way towards all-time highs at around 13,800 pts. Failure to break high could see the index pull back towards near-term support at 12,850 pts. EU recovery fund talks are a key theme to watch for DE30 traders today.

Company News

German parliament's financial committee will meet on Wednesday next week to discuss the Wirecard (WDI.DE) scandal. Finance Minister Scholz is expected to attend. Scholz has drawn criticism after it came out he knew about concerns over Wirecard for 18 months before the payments company collapsed. Economy Minister Altmaier may also attend.

Daimler (DAI.DE) announced preliminary Q2 results late last week. The German carmaker expects EBIT loss of €1.68 billion. Expected EBIT loss was €2.1 billion. 

DAX members at 10:09 am BST. Source: Bloomberg