DE30 bounces off daily lows at 13,860 pts

• European indices trade lower

• DE30 struggles near 200-hour moving average

• Germany will pay €2.4 billion compensation for nuclear exit

European indices trade lower during the final trading session of the week, following risk-off moves spotted during Wall Street and Asian trading. German DAX bounced off daily lows but still trades over 100 points below yesterday's close. NFP report release at 1:30 pm GMT is the main event of the day. However, traders should keep in mind that markets have overlooked poor jobs data recently.

Source: xStation5

DE30 has painted a lower high during the Asian trading and has once again moved lower at the beginning of the European session. While decline has halted and the index bounced off the daily lows, recovery is being limited by the 200-hour moving average (purple line). Keep in mind that even if DE30 manages to break above the moving average, the index would need to break above the upper limit of the market geometry at 14,060 pts. As long as price sits below this hurdle, short-term outlook remains bearish. Should the index resume a downward move, the first support to watch can be found at 61.8% retracement of recent upward move (13,850 pts).

Company News

According to FAZ newspaper, Germany will pay out €2.4 billion in compensation to companies who had to shut down their nuclear reactors after German government decided to start phasing out nuclear energy over a decade ago. RWE (RWE.DE) is among companies eligible for the compensation.

Herbert Diess, CEO of Volkswagen (VOW3.DE), is in talks with the Spanish authorities over EV projects in Spain. Diess tweeted that Spain can become an e-mobility center of Europe.

Analyst actions

• RWE (RWE.DE) was rated "buy" at Deutsche Bank. Price target set at €35

• Henkel (HEN3.DE) was upgraded to "hold" at Nord/LB. Price target set at €85

• Evotec (EVT.DE) was downgraded to "neutral" at Citi. Price target set at €32.50

DAX members at 10:18 am GMT. Source: Bloomberg