DE30 tops 14,000 pts

• European markets trade higher

• DE30 tops 14,000 pts for the first time

• Lufthansa raised €500 million by refinancing aircraft

European markets trade higher on the final trading day of the week. However, major stock market indices from the Old Continent have moved off the daily highs. Markets continued to be driven by 'Blue Wave' arriving in the United States. NFP report release at 1:30 pm GMT is the main macro release of the day and may spur some short-term volatility. However, it looks unlikely that it will trigger a longer lasting move as markets remain focused on improved outlook for the US stimulus.

Source: xStation5

DE30 continued to rally and has managed to climb above the 14,000 pts over the night for the first time in history. German index continued to move higher at the start of the European cash trading until the upward move was halted slightly above the 14,100 pts. A pullback can be observed currently but bears struggle to push the index below short-term upward trendline. However, in case they manage to do so, attention will shift to the lower limit of the Overbalance structure at 13,975 pts. Breaking below this hurdle could see the downward move accelerate. NFP report is a risk event of the day and may trigger short-term volatility. However, it should not have a long lasting impact on the markets as even an ugly reading has a scope to be ignored by the markets amid prospects of a new multi-trillion stimulus package that is expected to be presented by the Biden administration.

Company News

Lufthansa (LHA.DE) has raised €500 million in the second half of 2020 via refinancing schemes. The German carrier used eight Airbus aircraft from its fleet as a security in the schemes. As demand for air travel remains depressed airlines are looking for funds with some of them deciding to sell part of a fleet or refinance it like Lufthansa did.

Some real estate owned by former CEO of Wirecard (WDI.DE), Markus Braun, has been put up for sale and proceeds will be used to pay damages to investors. Share price of the Wirecard has made a gargantuan rise in the earlier part of the week but as the company collapsed and there is no way for it to continue as a going concern it was a purely speculative play. Most of the gains were erased during the past two days.

TUI (TUI.DE) announced an offering of new shares to existing shareholders. Shareholders will be offered 25 new shares for each 29 shares they hold at a price of €1.07. Total offering will include almost 509 million new shares and will generate proceeds of approximately €544.6 million. Proceeds will be used to repay debt.

DAX members at 10:07 am GMT. Source: Bloomberg