DE30 tests upper limit of trading range at 14,550 pts

• European stock markets trade higher

• DE30 tests upper limit of trading range at 14,550 pts

• Daimler Truck CEO warns that electric trucks will be more costly than combustion trucks

European stock markets trading higher at the beginning of a new week, in spite of a mixed trading in Asia. All major European indices trade higher today, except for Russian indices that trade 1-2% lower. Spanish and Italian blue chips benchmarks are top performers trading around 1.8% higher at press time. Economic calendar for today is empty with no major releases scheduled. Russia-Ukraine talks were expected to begin today in Turkey but Russia said that it is more likely they will start tomorrow.

Source: xStation5

DE30 managed to defend the 14,200-14,250 pts support zone last week, that marks the lower limit of a current trading range. Following a recovery on Friday and today, the German index is now testing the upper limit of the range in the 14,500-14,550 pts area. Should we finally see an upside breakout from the range, an upward move may extend towards the 14,840 pts area marked with a local high from February 23 as well as a textbook range of the breakout from the range. On the other hand, failure to break above could see the index move towards the lower limit once again. In such a scenario, traders should also have a 200-session moving average (purple line) on watch as a potential support.

Company News

Temasek Holdings, a long-term investor in German Bayer (BAYN.DE), is said to be pushing for removal of Bayer's CEO Werner Baumann. Bloomberg reports that activist investors have decided on such a move as it is concerned about Bayer's operational performance under Baumann's lead.

Martin Daum, CEO of Daimler Truck (DTG.DE), said in an interview with Financial Times that costs of electric trucks will forever be higher than costs of combustion-engine vehicles. This could be a potentially major obstacle towards quick and wide adoption of electric trucks. Daum also criticized EU authorities for failing to authorize a $500 million plan to set up a network of chargers for electric trucks. Plan was proposed jointly by Daimler, Volvo and Traton.

Analysts' actions

• Vonovia (VNA.DE) was downgraded from "buy" to "neutral" at Morgan Stanley. Price target set at €48.00

Bayer (BAYN.DE) is trading higher following reports that activist investor is seeking to oust the company's CEO. Stock broke above the resistance zone marked with 61.8% retracement June-October 2020 correction and is trading at the highest level since July 2020. The next potential target for bulls is 78.6% retracement in the €66.50 area. Source: xStation5