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Stock in Europe trade higher
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DE30 pulls back below support at 14,085 pts
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Voklswagen is not afraid of competition from Apple
Stock indices in Europe launched a new week higher after a solid Asian session. However, part of the gains has been erased after the cash opening. With US and Canadian traders off for holidays and an empty calendar the day is likely to be a calm one of the markets.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has launched today's trading higher following strong gains made by indices in Asia. However, bulls failed to hold onto these gains and the index started to move lower at the beginning of the European cash trading. Index dropped to the short-term swing level at 14,085 pts, where bears halted their assault. A point to note is that the index is still trading higher compared to Friday's close. Should we see resumption of a downward move, the level to watch can be found at the lower limit of the Overbalance structure (14,015 pts), that coincides with the 50-hour moving average (green line). On the other hand, in case index starts to recover from recent declines, the first resistance to watch is marked by today's intraday high at 14,150 pts. Traders should keep in mind that liquidity conditions throughout the day are likely to be thinner as US and Canadian traders are off for holiday.
Company News
According to media reports, Deutsche Bank (DBK.DE) is looking into the possibility of launching a cryptocurrency custody service along with cryptocurrency prime brokerage service. The bank is expected to launch a pilot initiative in 2021 to gauge interest among its global clientbase.
Herbert Diess, CEO of Volkswagen (VOW1.DE), said that in spite of Apple's big resources and expertise in batteries and software, his company is not afraid of the competition that the iPhone manufacturer may bring into the electric vehicle market. Diess said that unlike the technology sector, the automotive sector cannot be dominated quickly by a newcomer. Reuters reported in December 2020 that Apple may be ready to start mass production of passenger EVs by 2024.
Lanxess (LXS.DE) is one of the best performing stocks in Germany today. The company announced that it has signed an agreement with US chemical company, Emerald Kalama Chemical, to acquire it. Deal is valued at $1.08 billion and will be financed with Lanxess' current liquid assets. Deal is expected to close in the second half of 2021 and will be subject to regulatory approval.
Deutsche Bank (DBK.DE) is trading higher today. Stock is once again testing the resistance zone ranging above the 78.6% retracement of 2020 pandemic drop. A point to note is that this zone is additionally strengthened by the 50-session moving average (green). Breaking above the zone would put the stock on track to retest post-pandemic highs in the €10 area. Source: xStation5
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