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European stock markets try to recover from yesterday's drop
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DE30 still trades 400 points below Wednesday's close
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E.ON rallies as Goldman Sachs sees potential for tariff hike
European stock market indices are trading higher on the final trading day of the week. Indices attempt to recover from yesterday's plunge but DAX still trades around 400 points below Wednesday's closing price. Italian FTSE MIB (ITA40) is the outperformer with 1.6% gain while Polish WIG20 (W20) lags the most (-0.4%). Improvement in moods occurred after the Bank of Japan decided to keep monetary policy settings unchanged, unlike SNB yesterday.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appYesterday's slump on DE30 market was halted in the 13,000 pts area, marked with 78.6% retracement of the upward move launched in early-March 2022 (orange circle). An attempt to launch a recovery move can be spotted today. A key resistance zone to watch it case it continues can be found in the 13,400 pts area, marked with previous price reactions, 61.8% retracement as well as the upper limit of a local market geometry. A break above this hurdle would be needed to brighten the outlook for bulls.
Company News
Audi, a subsidiary of Volkswagen (VOW1.DE), filed a lawsuit against an electric vehicle manufacturer - NIO (NIO.US). Lawsuit relates to NIO's model designations for the European market that allegedly infringe Audi's trademarks.
Volkswagen (VOW1.DE) also agreed to pay a $80 million fine to settle claims that fuel economy test results in Porsche cars sold in 2005-2020 period were improperly skewed.
Analysts' actions
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E.ON (EOAN.DE) upgraded to "buy" at Goldman Sachs. Price target set at €12.50
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Grand City Properties (GYC.DE) upgraded to "buy" at Societe Generale. Price target set at €16.70
E.ON (EOAN.DE) is one of the best performing DAX stocks, following an upgrade it received at Goldman Sachs. Stock is trading 2% higher on the day and attempts to make a break back above the 78.6% retracement of the post-pandemic recovery move. Goldman Sachs says that there is potential for a tariff hike amid recent surge in natural gas prices, and it would have a positive impact on E.ON results. Source: xStation5
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