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European markets continue to recover
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DE30 tests 13,800 pts area
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Deutsche Bank's traders outperformed Wall Street peers
European stock markets trade higher for the second day in a row. German DAX (DE30) is gaining 1.4%, extending two-day advance to over 2.7%. Other blue-chips indices from Western Europe gain over 1% as well with French CAC40 (FRA40) being top performer and trading almost 2% higher.
Euro area economy shrank 0.7% QoQ in the final quarter of 2020. Reading turned out to be better than expected as the median estimate pointed to 0.9% QoQ. This was preliminary reading and full contribution breakdown will be released on March 9.
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Source: xStation5
DE30 continues to advance. German index broke above the 200-hour moving average today (purple line) and approached the resistance zone at 13,800 pts. Apart from previous price reactions, this area is also marked with a short-term downward trendline and breaking above it could herald a renewed attempt of bringing the index back towards all-time highs in the 14,100 pts. Should we see a break above the 13,800 pts zone, the first resistance to watch can be found at 13,880 pts. On the other hand, failure to jump above the 13,800 pts zone could trigger a pullback with the 13,700 pts area being the first target for sellers.
DAX members at 10:03 am GMT. Source: Bloomberg
Company News
Fresenius Medical Care (FME.DE) is the worst performing stock in the German DAX index today. Company said that it expects profit to decline in 2021 amid high death toll from the coronavirus pandemic. Fresenius Medical Care specializes in kidney dialysis and its patients are considered to be in the coronavirus high risk group. Apart from that, increased spending on safety measures will also negatively impact profits. Fresenius SE (FRE.DE), who owns around a third of Fresenius Medical Care, is also trading lower today.
Herbet Diess, CEO of Volkswagen (VOW1.DE), told company's managers that he expects an upturn in the global economy in the second half of 2021 as vaccination programmes will take effect. He continued saying that he expects people to start buying more cars .
According to a Bloomberg report, Deutsche Bank (DBK.DE) generated €1.4 billion in revenue from fixed-income trading in the final quarter of 2020. This would mark an around 20% year-over-year increase - a very good result given that top 5 US investment banks booked an increase of 10% on average in this segment in Q4 2020. Deutsche Bank declined to comment on the content of Bloomberg report ahead of the official earnings announcement.
Fresenius Medical Care (FME.DE) extends plunge as the company sees high Covid-19 death toll having a negative impact on its core business. Stock is testing post-pandemic lows in the €55.50 area. Source: xStation5
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