DE30 subdued after weak factory orders data

• European stock markets opened higher
• German factory orders fell sharply in October
• Deutsche Bank (DBK.DE) upgraded to Overweight from Neutral at JPMorgan (JPM.US)

European indices launched today's session higher, helped by a rebound in tech stocks after Friday's sell-off as well as gains in energy firms on the back of a jump in oil prices. Still, traders continue to monitor developments around the omicron Covid strain and mounting inflationary pressure. Despite upbeat moods, DAX is rather muted as new orders for German manufactured goods plunged 6.9% MoM in October, following an upwardly revised 1.8% rise in September and compared with analysts’ estimates of a 0.5% decline. Foreign demand tumbled 13.1% due to a 3.2% decrease in orders from the Euro Area and a 18.1% slump in orders from other countries, with the latter being influenced by the absence of major orders for machinery and equipment. On the other hand, domestic demand grew by 3.4%. If we exclude the largest orders, the decline is only 1.8% MoM, but the waning impact of stimulus programs and the slow normalization of monetary policy may cause the current downtrend to continue.

DE30 continues to hover near 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 50 SMA (green line). Should break lower occur, downward move may accelerate towards support at 14180 pts. Source: xStation5

Company news:

Deutsche Bank (DBK.DE) shares rose nearly 3.0% after J.P.Morgan (JPM.US) upgraded the company stock  to "overweight" from "neutral" with a €15.00 price target.

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 bullish wave launched in March 2020. Upward move may accelerate towards resistance at €12.60 if bulls will manage to break above the upper limit of the aforementioned channel. Source: xStation5

Delivery Hero SE’s (DHER.DE) second attempt to buy its competitor Chefz from Saudi Arabia has failed after the local regulator rejected its takeover offer. Saudi Arabia's General Authority for Competition did not provide any details behind its decision on Sunday. However, Chefz confirmed that negotiations are still ongoing.

Deutsche Post (DPW.DE) CEO Frank Appel is the favorite to become the next supervisory board chairman of Deutsche Telekom (DTE.DE), two sources close to the matter told Reuters. News agency informed that Deutsche Post's supervisory board is due to meet on Wednesday and Deutsche Telekom's board will meet a week later to discuss the matter. Both companies declined to comment.