DE30 tests recent local high near 13,200 pts

• European stock markets trade slightly higher

• DE30 tests recent local high near 13,200 pts

• Airbus positive on widebody jet demand recovery

Stock markets in Europe are trading higher during the first trading session of a new week. Trading during the day, and especially in the afternoon, is expected to be somewhat muted as traders from the United States are off to observe the holiday today. Economic calendar is empty therefore the session may be calm as well. The only noteworthy events today are speeches from ECB President Lagarde at EU Parliament (2:00 pm BST and 4:00 pm BST) as well as a speech from Fed Bullard (4:45 pm BST).

Source: xStation5

Downward move on DE30 markets was halted at 78.6% retracement of the upward move launched in early-March, at least for now. The 13,000 pts area provided a support but as global economic outlook remains questionable, one cannot rule out that the downward move may resume. In such a scenario, the aforementioned 13,000 pts area will be key to watch as break below would pave the way for a test of the early-March lows in the 12,500 pts zone. On the other hand, should bulls remain and manage to push the index above a 13,200 pts swing level, buyers' attention may shift towards the 13,400 pts resistance zone, marked with 61.8% retracement and the upper limit of market geometry.

Company News

Christian Scherer, Chief Commercial Officer at Airbus (AIR.DE), said that the company is starting to see signs of recovery in demand for wide body jets. In other news, Guillaume Faury, CEO of Airbus, said that the European planemaker is in talks with Qatar Airways to resolve a legal dispute that has led to cancellation of Qatar's orders by Airbus.

According to a Reuters report, Air India is in talks with Airbus and Boeing over potential purchase of 300 narrowbody jets. Company considers ordering Airbus or Boeing planes or a mix of two.

Bayer (BAYN.DE) won the fourth Roundup trial in the United States. A court in Oregon ruled that Roundup, a weedkiller produced by Monsanto which was acquired by Bayer, was not a cause for plaintiff's cancer.

Analysts' actions

• Varta (VAR1.DE) rated "buy" at Goldman Sachs. Price target set at €102.00

Airbus (AIR.DE) is trading slightly higher today. Positive comments from company's executives as well as Reuters piece on potential massive order from Air India are providing fuel for the move today. Stock halted recent drop at 38.2% retracement of the post-pandemic recovery move and attempts to launch a recovery. Source: xStation5