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European markets trade higher
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DE30 tests 200-hour moving average
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BASF released solid preliminary results for Q4 2020
Stock markets in Europe trading higher following a solid Wall Street session yesterday and gains made in Asia today. Biden's inauguration is the main event of the day but it should not have a major market impact. However, in case we see riots by Trump supporters, some risk-off moves may arrive. Also traders should look out for any immediate decisions made by Biden, that may be announced during his inauguration speech (around 5:00 pm GMT).
Source: xStation5
DE30 painted a double bottom near the 13,800 pts handle and launched an upward move afterwards. The index broke above the neckline of the pattern marked by the 13,875 pts price zone. Advance was later halted by the 200-hour moving average (purple line) but the index looks to be readying for another test of this hurdle. Should we see a break above it, recent peak in the 13,950 pts area, and a target of the aforementioned double bottom pattern, will be the level to look out for the bulls.
Company News
According to the Bloomberg report, MTU Aero Engines (MTX.DE) is considering whether to place a bid for ITP Aero, the Spanish manufacturer of aircraft parts. Rolls-Royce Holdings is launching the sale of ITP Aero this week and aims to raise over 2 billion GBP from the sale.
Stephan Wollenstein, head of Volkswagen (VOW1.DE) operations in China, said that the German carmaker has sold tens of thousands less cars in China due to shortages in the global chip market.
BASF (BAS.DE) released preliminary results for the final quarter of 2020. The company said that Q4 EBIT increased 32% YoY to €1.11 billion, turning out to be better-than-expected. Revenue increased 8% YoY to €15.9 billion. BASF will announce in February whether it will continue with its policy of increasing dividends every year.
Share price of Volkswagen (VOW1.DE) remains stuck in a 10-euro range limited by the resistance zone at €173 and a support zone at €163. A break above or below either of this zone could be viewed as a signal that a potentially bigger move may be looming. Source: xStation5
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