DE30 tries to return above 14,000 pts

• European stock markets trade mixed

• DE30 tries to return above 14,000 pts

• Thyssenkrupp positive about M&A in shipyard industry

European stock markets are trading mixed at the beginning of a new week. German, French and Dutch indices are pulling back slightly while other blue chips benchmarks from the Old Continent gain. Polish WIG20 (W20) and Austrian ATX (AUT20) are top performers gaining 1.2% and 1.7%, respectively. German DAX is trying to break back above 14,000 pts.

The newest set of economic forecasts from European Commission showed downside revision to growth forecast. EC expects economic growth in the Euro Zone to reach 2.3% in 2023, down from 2.7% seen in February forecast. Growth in 2022 is expected to reach 2.0%.

DE30 is trading slightly lower at the beginning of a new week. The index struggles with breaking above psychological 14,000 pts area. A point to note is that the upper limit of the downward channel as well as the upper limit of market geometry can be found in the area. A break above would make the outlook more bullish and would pave the way for a test of the 14,180 pts resistance. Source: xStation5

Thyssenkrupp (TKA.DE) said that it wants to play a key role in European shipyard industry consolidation. A merger could be made with smaller German rivals like Luerssen or German Naval Yards. Company also started to increase capacity following German announcement of increased defense spending and is interested in purchasing assets of MV Werften, who filed for insolvency at the beginning of a year.

According to a Reuters report, Deutsche Bank (DBK.DE) will not provide financing for the East African Crude Oil Pipeline connecting Uganda and Tanzania. A $3.4 billion project is very controversial as it will result in displacement of thousands of people as well as disruption and destruction of natural reserves. Deutsche Bank therefore joins a group of European countries that refused to take part in the project.

Analysts' actions

• Carl Zeiss Meditec (AFX.DE) upgraded to "buy" at HSBC. Price target set at €149.00

Thyssenkrupp (TKA.DE) is trading higher following optimistic comments on M&A in shipyard business. Stock broke above €8.00 resistance zone at the end of last week and is continuing recovery today. The nearest resistance to watch can be found below €9.00, where the upper limit of the downward channel and a 200-session moving average are located. Source: xStation5