DE30 climbs 1% as recovery continues

• European markets trade higher

• DE30 tests resistance at 61.8% retracement

• S&P upgrades Deutsche Bank's credit rating outlook

European markets trade higher on Monday following a solid session in Asia. Almost every blue chips index from the Old Continent is trading over 1% higher today. UK, Dutch and Italian indices are top performers as they gain around 1.5% each. German DAX gains 1.1%.

There are no key macro releases scheduled for today. US ISM manufacturing at 3:00 pm GMT may provide some short-term volatility but is unlikely to trigger bigger moves.

Source: xStation5

DE30 continues recovery started last Friday. The index jumped above 50- and 200-hour moving averages today and has managed to test the resistance zone marked by the 61.8% retracement of recent correction (13,970 pts are). Breaking above the 200-hour moving average has created a bullish technical landscape. However, in order to maintain it and consider attack on all-time highs, DE30 needs to break above the aforementioned resistance zone in the 13,970 pts area. In such a scenario, the attention would shift towards the next resistance at 78.6% retracement, marked by recent local high (14,060 pts).

Company News

Deutsche Bank (DBK.DE) gains following credit rating outlook hike at S&P. S&P improved the lender's credit rating outlook from negative to positive. Ongoing overhaul on the Deutsche Bank has been quoted as one of the reasons. Company's rating sits at BBB+.

Deutsche Boerse (DB1.DE) has launched a partnership with London Stock Exchange Group. Under terms of the agreement, Deutsche Boerse will list FTSE 100 futures and options on Eurex exchange. Trading is expected to start on March 29.

Analyst actions

• Fresenius Medical Care (FME.DE) maintained "buy" at Berenberg. Price target set at €79.50

• Bayer (BAYN.DE) maintained "neutral" at Barclays. Price target set at 55

• BASF (BAS.DE) rated "buy" at Bernstein. Price target set at €92

Shares of Deutsche Boerse (DB1.DE) bounced off the lower limit of a recent trading range at €133.00 and broke above the 50-session moving average (green line). The near-term resistance to watch in case upward move continues can be found at the upper limit of the range at €140.00.  Source: xStation5