DE30 tests upper limit of local market geometry

• European stock markets trade higher but off daily highs

• DE30 tests upper limit of market geometry in 13,290 pts area

• RWE to consider UK investment plans amid windfall tax

European stock markets launched new week's trading higher. Indices from the Old Continent trade higher following a stellar Wall Street session on Friday and solid performance of Asian equities earlier today. However, major European indices have moved off their daily highs as bulls seem to be running out of steam. Economic calendar for today is empty therefore volatility may be limited. Ongoing G7 meeting is an event to watch as new actions against Russia are being discussed.

Source: xStation5

DE30 extended a recent recovery run today, following a solid performance of Asian equities. However, the upward move has run into an important short-term obstacle in the 13,290 pts area - the upper limit of the local market geometry that coincides with the 23.6% retracement of the downward move launched on June 6, 2022. A failure to break above this resistance may signal that the index is about to resume slide and a move towards recent local low in the 12,850 pts area may be on the cards. On the other hand, should bulls regain strength and deliver a decisive break above the 13,290 pts area, a short-term outlook would become more bullish.

Company News

Detlef Kayser, a board member of Lufthansa (LHA.DE), said in an interview with Die Welt that the company does not expect improvement and return to normal flight operations until 2023. Lufthansa has already canceled 3,000 flights planned for this summer due to various factors, including labor shortages.

Moody's upgraded the long-term rating of Deutsche Post (DPW.DE) from A3 to A2 while short-term rating was upgraded from P-2 to P-1. Moody's assessed the outlook on all Deutsche Post's ratings as stable.

According to a Financial Times report, RWE (RWE.DE) is reconsidering its investment plans in the United Kingdom. Reconsideration comes as the UK moves closer to imposing a windfall tax on profits of electric utility companies. RWE planned to invest around 15 billion GBP in the United Kingdom by 2030.

Analysts' actions

• Kion Group (KGX.DE) upgraded to "overweight" at Morgan Stanley. Price target set at €63.00

• TeamViewer (TMV.DE) downgraded to "neutral" at JP Morgan. Price target set at €12.00

• Fresenius Medical Care (FME.DE) upgraded to "buy" at Jefferies. Price target set at €64.00

Fresenius Medical Care (FME.DE) launched today's trading with a big bullish price gap following an double upgrade from "sell" to "buy" at Jefferies. Stock launched trading over 3% higher but this gain has been trimmed to around 2.2% already as bulls struggle to maintain recovery move. Source: xStation5