DE30 defends lower limit of trading range

• European markets trade higher

• DE30 bounces off 13,400 pts support

• Gerresheimer rallies on failed takeover

European stock markets indices are trading higher on Wednesday. Moods on the global markets improved following release of better-than-expected monthly activity data from China. Major indices from Western Europe trade 1.0-1.5% higher today. Polish WIG20 (W20) is a laggard as it drops 0.9%. Italian FTSE MIB (ITA40) is today's top performer with a 3% gain.

FOMC decision at 7:00 pm BST is a key macro event of the day and is likely to trigger a jump in volatility on FX and stock markets. Apart from that, ECB is set to hold an emergency meeting today to discuss the situation on the bond market, what may also have an impact on other markets depending on the outcome.

Source: xStation5

DE30 dropped below support zone at 61.8% retracement of March upward move in the 13,400 pts area yesterday. However, an attempt to break back above this hurdle can be spotted today. Moods on the markets improved overnight and a strong upward move was launched at the start of the European session. However, part of those gains was erased already. It looks like the lower limit of a wide 13,400-14,650 pts trading range was defended and now a recovery move towards the upper limit  may be looming. However, a break back below 13,400 pts would make the outlook much more bearish.

Company News

Gerresheimer (GXI.DE) is rallying over 10% today. Bloomberg reports that the company has rejected a takeover attempt by Bain Capital, a private equity firm. Valuation proposed by Gerresheimer was too high.

The European Aviation Safety Agency backed Airbus (AIR.DE) in its dispute with Qatar Airways. EASA said that its investigation found no evidence of problems that pose safety issues in A350 planes. Qatari airline said that it found defects posing risk to the aircraft and grounded 20 of its A350 jets. Airbus later canceled outstanding orders placed by Qatar Airways as the two went to the court.

Gerresheimer (GXI.DE) is rallying today following the Bloomberg report on a failed takeover attempt. Stock bounced off the lower limit of recent €64.00-73.50 trading range and tested the upper limit, which is additionally strengthened by the downward trendline. The first attempt of breaking above today was a failed one. Source: xStation5