DE30 tests 200-hour moving average

• European markets trade slightly lower

• DE30 tests 200-hour moving average

• Brenntag jumps following upgrade to full-year forecasts

Majority of the European stock market indices are trading slightly lower during the final trading session of the week. Economic calendar for today is empty therefore today's trading may be slightly muted. Expiration of large number of US index and stock derivatives may have an impact on the volatility on the US market by the end of today's Wall Street session but it is expected to be short-lived and should not have a major impact on markets in Europe.

Source: xStation5

German DAX (DE30) is trading lower today. Index pulled back to the 15,670 pts area where the 200-hour moving average as well as short-term upward trendline can be found. While a break below the trendline can be seen as a bearish signal, investors should also focus on the 15,640 pts area marked with recent local lows. Pushing below this hurdle would result in painting a lower low and a short-term downtrend structure may surface. On the other hand, if bulls manage to defend this zone, the first target for buyers may be the resistance zone ranging between 15,730 and 15,740 pts, which limited an upward move yesterday.

Company News

According to a Handelsblatt report, German Federal Network Agency aims to cut interest paid to operators of electricity and gas networks from the current 6.9% to 4.59%. Report did not specify when change may become effective. E.ON (EOAN.DE) is one of companies that may be potentially negatively affected.

Volkswagen (VOW1.DE) informed in a statement that it plans to employ a 3D printing process in car production. Company wants as many as 100,000 components to be printed annually by 2025 at its plant in Wolfsburg, Germany. Company plans to use printers developed by HP while Siemens (SIE.DE) will provide software.

Brenntag (BNR.DE) trades over 3% higher today. Member of the MDAX index released updated full-year forecasts. Company now expects full-year EBITDA to come in at €1.16-1.26 billion, up from the previous range of €1.08-1.18 billion.

Brenntag (BNR.DE) is recovering from yesterday's decline today, following the release of a boosted full-year EBITDA forecast. Stock tested a short-term resistance zone at €77.65 at the beginning of today's session but failed to break above during the first attempt. Two near-term levels to watch are the aforementioned resistance at €77.65 and a support marked with the 23.6% retracement of upward move launch in May (€77 area). Source: xStation5