DE30 tested resistance zone at 15,550 pts

• European stock markets trade higher

• DE30 tested resistance zone at 15,550 pts

• TUI drops after launching new round of funding

European stock markets are trading higher at the beginning of a new week. European trading session was launched with big bullish price gaps following a solid Wall Street session on Friday. However, part of the gains was already released. GDP report released earlier in the day failed to move equity markets and the upcoming German CPI reading may have more impact on FX markets than stocks.

Euro area GDP report pointed to a 0.3% QoQ growth in the final quarter of 2021, in-line with analysts' expectations. However, on year-over-year basis growth reached 4.6%, slightly lower than 4.7% YoY expected. Data has been largely overlooked by the markets with indices continuing a pullback started after the launch of the cash session. German inflation data at 1:00 pm GMT may have more impact on the markets, especially as the ECB meeting is later this week.

Source: xStation5

DE30 launched new week higher following a solid Wall Street session on Friday. However, the index halted advance after reaching the resistance zone marked with 50% retracement of the downward move started at the beginning of a year (15,550 pts area). Index pulled back below the 200-hour moving average (purple line). If bulls fail to regain control, a pullback towards the lower limit of the short-term upward channel in the 15,150 pts area cannot be ruled out. However, if buyers regain control, another attempt of breaking above 15,550 pts area may be made and possible a test of the upper limit of the channel at around 15,640 pts.

Company News

TUI (TUI.DE) is launching a €500 million funding round targeting institutional investors. Proceeds will be used to finance new hotels. Move comes at times when TUI is struggling with record debt following Covid-19 depression in the tourism industry.

According to a Reuters report, T-Mobile (TMUS.US), subsidiary of Deutsche Telekom (DTE.DE), informed via memo that corporate employees that do not get vaccinated by April will have their contracts terminated. 

Analysts' actions

• Bayer (BAYN.DE) upgraded to "buy" at Citi. Price target set at €70.00

Shares of TUI (TUI.DE) are trading lower following news on €500 million round of financing. Stock broke below the lower limit of a short-term trading range at 23.6% retracement of the upward move started in mid-December. Note that this zone was also marked with 50- and 200-hour moving averages. The next support zone to watch can be found at the 38.2% retracement (€2.88 area). Source: xStation5