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Stocks try to recover from yesterday's sell-off
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DE30 tests upper limit of trading range
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Bayer and Basf to cut synthetic chemical use in pesticides
Stock markets in Europe try to recover from yesterday's sell-off. Gains can be spotted on blue chip indices all across the Old Continent. Dutch AEX (NED25) is a top performer as it gains 1.3%. Economic calendar is light today with the Bank of Canada decision being the only major event. However, it should not have much of an impact on the equity markets. Traders should watch whether sentiment on US tech index (US100) changes ahead or near today's Wall Street open
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is recovering from yesterday's sell-off today. Nevertheless, the German index still looks locked within the 12,850-13,100 pts consolidation range. The index surged in the first hours of today's session but the upward move was halted by the resistance zone marked with 50% retracement of last week's drop (13,100 pts). A pinbar candlestick pattern with long upper wick was painted near the 200-session moving average (purple line). Should we see a break above the 13,100 pts handle later today, bulls could aim for the resistance ranging below 13,200 pts (61.8% retracement). On the other hand, another failure to break above this hurdle, could trigger a pullback. In such a scenario support at 13,000 pts (38.2% retracement) will be the first area to watch. Key and final support can be found at the lower limit of a trading range at 12,850 pts. A lot will depend on whether US tech sell-off continues after Wall Street open today.
Company News
Bayer (BAYN.DE), Basf (BAS.DE) as well as other European chemical companies vowed to spend up to €14 billion until 2030 to cut synthetic chemical use in pesticides. Earlier the European Union outlined a plan to cut pesticide use by a half within the bloc.
TUI (TUI.DE) decided to cancel trips to Greek islands after the UK government ordered tourists returning from there to undergo a quarantine. Decision affects holiday trips to Crete, Santorini, Zakynthos and Mykonos scheduled before Tuesday, September 22. Greek islands are one of the most popular destinations for UK tourists.
Airbus (AIR.DE) was downgraded at Morgan Stanley from "overweight" to "equal weight". Price target was lowered from €90 to €73.
DAX members at 10:39 am BST. Source: Bloomberg
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