DE40 pulls back from 17,000 pts area

• European indices erase early gains
• DE40 pulls back from the 17,000 pts area
• Airbus likely to exceed annual delivery target

European stock market indices launched the first trading session of a new year higher. However, the optimism did not last long and gains started to be erased. German DAX futures climbed to the highest intraday level in history but have turned lower later on. Major blue chips indices from the Western Europe are now trading lower on the day. However, there are some exceptions, like Italian FTSE MIB and Spanish IBEX, which trade 0.4% and 0.6% higher on the day, respectively.

Source: xStation5

German DAX futures (DE40) has been trading in a sideways move since the third week of December. Moves on the index have been largely confined to the 16,800-17,000 pts trading range since, spare for few false breakouts. Index launched today's cash session with a bullish price gap and rallied to fresh all-time highs above 17,100 pts area. An intraday high was painted near 17,120 pts. However, bulls failed to hold onto those gains and the index slumped back into the 16,800-17,000 pts range. The sell-off looks to have been halted at the 16,860 pts swing area, at least for now. Nevertheless, a clear break above the 17,000 pts resistance or below the 16,800 pts support would likely be needed to determine the direction of a next big move.

Company News

Airbus (AIR.DE) is likely to have exceeded its annual delivery goal, following an increased production rate in December. Data from the Aviation Flights Group suggests that the European plane maker may have delivered over 733 planes in 2023, above the company's own target of 720 deliveries.

Shares of Mercedes-Benz Group (MBG.DE) are trading higher today, but have erased the majority of earlier gains. It was reported that the carmaker will continue to pay government and company share of EV subsidies in January 2024. This will apply to new orders that are licensed and delivered until January 31, 2024. Germany ended EV subsidies starting from 2024.

Analysts' actions

• Lufthansa (LHA.DE) cut to 'sell' at Citi. Price target set at €6.60

Lufthansa (LHA.DE) drops following a downgrade at Citi. Stock is making a break below the €7.90 swing area today. Price continues to pullback following a failure to break back above the 50% retracement of the upward move launched at the end of September 2022 at the beginning of December. The next level to watch should the pullback continue can be found at the 61.8% retracement in the €7.65 area. Source: xStation5