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Stock market indices wait for FOMC meeting
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DE30 trades slightly below 14,600 pts area
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European car sales plunge 20.3% in February
Major stock market indices from Europe are trading either flat or slightly lower on Wednesday. Investors seem to be in a wait-and-see mode ahead of today's FOMC decision (6:00 pm GMT). Session has been rather calm so far with no abrupt moves. Stocks from Belgium and Italy are top performers in Europe while Polish equities underperform the most
Some reports surfaced saying that Germany may backtrack on its decision to suspend AstraZeneca vaccine shots. German vaccine meeting is scheduled for Thursday, 3:00 pm GMT and a decision could be announced afterwards.
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DE30 has managed to paint a higher low. However, the resistance zone ranging below 14,600 pts area continues to halt attempts of breaking higher. As long as the price sits below this hurdle, range trading between 14,470 and 14,600 pts looks to be the base case scenario for DE30. Traders should expect elevated volatility in the evening when FOMC announces the latest monetary policy decision and releases a new set of economic forecasts. Source: xStation5
European car sales dropped 20.3% YoY in February, to 850.17 thousand vehicles. Spanish sales took the biggest hit dropping 38% while new registrations in the United Kingdom were down 36%. Volkswagen sales declined 19% YoY, BMW sales dropped 13.1% YoY while Daimler sales were 20.4% YoY lower.
Volkswagen (VOW1.DE) announced that it has cut 11.5 thousand jobs as a part of a labor pact struck in 2016 and plans to cut another 2 thousand positions.
BMW (BMW.DE) said it expects a return from the automaking business to recover to 6-8% this year, up from 2.7% in 2020. German carmaker also said it expects half of its sales to be electric vehicles by the end of 2030. Oliver Zipse, CEO of the company, said BMW has entered 2021 with a strong momentum.
Benoit Defforge, President of Corporate Jets unit of Airbus (AIR.DE), said that the second wave of pandemic has slowed sales campaigns for new business jets. He added that sales activity was very weak in December and January but has started to pick up since March.
Analysts' actions
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Henkel (HEN3.DE) upgraded to "neutral" at UBS. Price target set at €88
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Fraport (FRA.DE) upgraded to "buy" at HSBC. Price target set at €60
DAX members at 10:17 am GMT. Source: Bloomberg
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