DE30 slightly lower after strong German trade data

• European stock markets opened mixed
• Upbeat German trade data
• Deutsche Bank (DBK.DE) may have breached criminal settlement

Mixed moods prevail on European markets as investors continue to monitor developments surrounding the omicron variant ahead of US jobs data. Despite promising news from Pfizer about the protection offered by a third dose of its vaccine, the WHO said it will require 2-3 more weeks to study the omicron variant more thoroughly. Meanwhile UK PM Johnson announced stricter public health restrictions, under the so-called “Plan B”, confirming earlier media reports. The new rules include mandating vaccine passes in the access to large venues and advising work-from-home when possible. On the policy front, ECB said to near a compromise on temporary, limited bond purchases boost. Central bank intends to bolster APP purchases next year once PEPP ends, however there would be limits to size and time of commitment. On the data front, Germany’s trade surplus narrowed to €12.8B in October 2021, from €19.6B in the same month last year as exports rose at their strongest pace in more than a year in October, climbing 4.1% after falling in August and September. Imports jumped 17.3% to a record high of EUR 108.5 billion, prompted by purchases from China (28.6%), the EU (14.6%), namely the Euro Area (18.8%) and the US (4%).

DE30 took a breather after the recent rally. On Monday index bounced off the support zone at 15070 pts which is marked with lower limit of the 1:1 structure, 23.6% Fibonacci retracement of the upward wave launched in October 2020 and 200 SMA (red line). Next the German benchmark broke above local resistance at 15500 pts which now acts as support. However, the upward move weakened on Wednesday and the index is currently approaching 50 SMA (green line). Should break lower occur, downward move may accelerate toward the aforementioned support. On the other hand if buyers will manage to regain control, then another upward impulse may be launched towards all-time high at 16325 pts. Source: xStation5

Company news:

Deutsche Bank (DBK.DE) stock dropped 2.5% after the Wall Street Journal reported that the bank may have breached a criminal settlement with the U.S. Department of Justice by its silence over an internal complaint.

Deutsche Bank (DBK.DE) stock has been moving lower since end of October, however buyers managed to halt declines around major support zone at €10.65 which coincides with upward trendline, lower limit of the descending channel and 23.6% Fibonacci retracement of the upward wave launched in March 2020. Yesterday buyers failed to keep the price above the upper limit of the aforementioned channel and price pulled back. If current sentiment prevails, downward move may accelerate towards €10.65. Source: xStation5

Moody's changed Bayer's (BAYN.DE) outlook to negative from stable on litigation risks related to Monsanto Inc. that Bayer acquired in 2018. 

According to Reuters, Airbus (AIR.DE) is closing towards a possible breakthrough at Dutch airline KLM, potentially displacing Boeing as its supplier of medium-haul jets, three people familiar with the matter said on Wednesday.

BMW AG (BMW.US) signed a long-term deal with Inova Semiconductors and Globalfoundries Inc., to secure semiconductors for in-car lighting systems after a global shortage of the components led to shutdowns at some of its factories, according to Bloomberg.