DE30 approaches 12,500 pts mark ahead of US jobs data

10:34 AM 2 July 2020
  • European markets rally on Thursday

  • DE30 just a notch below 12,500 pts

  • SoftBank ends partnership with Wirecard (WDI.DE)

European stock markets advance along US futures on Thursday. DAX is trading almost 1.9% higher and is one of the best performing major indices in Europe. ADP data released yesterday showed another month of strong jobs growth and investors turned a blind eye to rising Covid-19 cases. NFP report release at 1:30 pm BST is the major event of the today as it may be an "official" confirmation that reopening continued in June.

Source: xStation5

DE30 recovered from yesterday's decline and broke to a fresh weekly high today. The index is trading just a notch below an important resistance zone ranging around 78.6% retracement of February-March sell-off (12,550 pts area). US jobs data releases at 1:30 pm BST is a risk event of the day and may trigger some bigger moves. The nearest levels to watch are - the aforementioned resistance at 12,550 pts and support at 12,400 pts. Keep in mind that today is the last trading day for US equities ahead of a long weekend therefore some more volatility may be present. In spite of temporary dips, stock markets have been very strong in previous months therefore we could see a break above 12,550 pts. In such a scenario, attention will shift to short-term resistance at 12,740 pts.

DAX members at 10:13 am BST. Source: Bloomberg

Ola Kallenius, CEO of Daimler (DAI.DE), said that Covid-19 pandemic will cause manufacturers to make more significant restructuring plans than previously expected. Executive warned of a much harsher reality in post-Covid world for automotive companies and big salary cuts in the sector.

Share price of Tesla (TSLA.DE) rose during yesterday trading in Frankfurt and later in New York. The electric vehicle car maker gained over 4% and the company surpassed Toyota in terms of market cap. This can be seen as some kind of milestone as this means that Tesla is now the most valuable automotive company in the world!

RWE (RWE.DE) and E.ON (EOAN.DE) completed an asset swap. Renewables and gas storage business units were transferred from Innogy, subsidiary of E.ON, to RWE. 2,700 employees made a move to RWE as well.

SoftBank Group, Japanese tech conglomerate, decided to terminate the 5-year partnership agreement with Wirecard (WDI.DE) after the German payments company collapsed due to an accounting scandal. Partnership agreement was struck in April 2019. SoftBank helped Wirecard arrange a $1 billion convertible bond deal.

In spite of grim outlook presented by CEO, Daimler (DAI.DE) gains today on increased risk appetite. Share price tested a 200-hour moving average today but was unable to break above it so far. A pullback towards lower limit of trading range could be on the cards now. Source: xStation5

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