DE30 tests major support

• European stock markets trade mixed
• DE30 pulled back to support at 15,511 pts
• Daimler (DAI.DE) stock upgraded by JP Morgan

European indices trade mixed at the end of the week as investors balanced risks of inflation and the likelihood of tighter global monetary conditions with prospects of a strong economic recovery. Construction-related stocks rose slightly after US President Biden reached a bipartisan infrastructure deal; while tourism and travel shares were under pressure following Chancellor Merkel and French President Macron's calls for more travel curbs in the bloc ahead of the peak tourist season. German consumer morale increased to -0.3 heading into July, the highest level since August 2020 and well above market expectations of -4.0.

DE30 launched today’s session slightly higher, however the upward move was again halted by the 50 SMA (green line) and index pulled back to the local support at 15511.5 pts. As long as the price sits above it, further upward impulse is possible. On the other hand, should a break lower occur, then downward move may accelerate towards support at 15280 pts which coincides with 50% Fibonacci retracement of the recent upward wave. Source: xStation5

Daimler (DAI.DE) -The Renault-Nissan-Mitsubishi alliance is set to scrap a role overseeing ties with Daimler in favour of individual relations with the German group, three sources told Reuters, as they try to better manage a partnership that has not met initial hopes. Separately JP Morgan advises its customers to buy the stock. The target price remains set at € 100.

Daimler (DAI.DE) stock broke below 50 SMA (green line) and is currently testing 23.6 Fibonacci retracement of the last upward wave. Should break lower occur then downward move may accelerate towards support at €76.10 which coincides with 38.2 Fibonacci retracement. Source: xStation5

Deutsche Post (DPW.DE) stock fell nearly 1% after logistics group FedEx said rising costs driven by surging parcel deliveries threatened to curtail profits.

Deutsche Bank (DBK.US) - ECB has cautioned German biggest lender that the company will likely have to hold greater amounts of equity to account for risks surrounding its leveraged lending to the highly-indebted clients. Meanwhile Hong Kong's regulator yesterday fined a Deutsche Bank unit $315,522 for issuing incorrect statements to its prime brokerage clients for 12 years and delaying reporting its failure to the regulator.

Volkswagen (VOW3.DE) - yesterday Europcar announced it had turned down an offer from German carmaker to acquire the company for 44 euro cents a share. However Volkswagen confirmed it is still interested in acquiring a majority stake in Europcar. Meanwhile Skoda Auto, part of Germany's Volkswagen Group, wants electric cars to make up at least half of its sales in Europe by 2030 as it transitions from motor engines in the coming decade, the Czech carmaker said on Thursday.