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Stocks in Europe trade higher
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DE30 tests upper limit of trading range
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Volkswagen explores sale of Electrify America
Stocks in Europe are trading higher on Wednesday as indices try to recover from yesterday's sell-off. Gains can be spotted all across the Old Continent with Polish WIG20 (W20) gaining 2% and being the outperformer. Spanish IBEX (SPA35) can be seen as a laggard as it gains only 0.1%. FOMC minutes release at 7:00 pm BST is a key event of the day.
European Commission released a new set of economic forecasts today at 10:00 am BST. EC upgraded GDP forecast for 2021 to 4.8 from 4.3% previously. 2022 GDP forecast was boosted from 4.4 to 4.5%. Meanwhile, CPI forecast for the euro area was boosted from 1.7 to 1.9% for 2021 and from 1.3 to 1.4% for 2022.
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Source: xStation5
DE30 experienced steep downward moves shortly after opening of the European cash session in recent days. However, this time the German index has managed to snap a streak and investors could observe a large jump at the beginning of the European session and shortly before it. There was no news that could justify this jump. Having said that, it looks like the index continued to play out technical trading range. DE30 bounced off the lower limit of the range in the 15,450 pts area and moved towards the upper limit at around 15,650 pts. While the initial attempt of breaking above failed, the index continues to trade near the upper limit. In case of a break high, attention will shift to the resistance zone at 15,740 pts. Traders should keep in mind that lack of major data releases may lead to a slightly muted session. However, things are about to get more interesting in the evening with the FOMC minutes release scheduled for 7:00 pm BST.
Company News
According to a Reuters report, Volkswagen (VOW1.DE) is exploring sale of Electrify America - its EV charging unit. Report claims that German carmaker partnered with Citi to look for an investor readying to invest around $1 billion in the unit. Neither of the companies involved commented on the content of the Reuters report.
Nordex (NDX1.DE) won an order for 162 turbines with a combined power of 923 mega-watts for a wind farm project in eastern part of Australia.
Analysts' actions
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SAP (SAP.DE) upgraded to "buy" at Bank of America. Price target set at €150
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Adidas (ADS.DE) upgraded to "buy" at HSBC. Price target set at €360
Nordex (NDX1.DE) trades higher today, following news on a contract in Australia. Stock bounced off the support zone marked with the 50% retracement and the upward trendline. The nearest key resistance to watch can be found in the area marked with 38.2% retracement of the upward move launched in March 2020 (€20.25). Source: xStation5
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