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European equities launched the week higher
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DE30 breaks sequence of lower highs
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Rheinmetall (RHM.DE) renewed long-term agreement with Dutch army
Gains dominate across the European quotation board at the beginning of a new week. Indices from the Old Continent are catching up with the late-Friday rally on Wall Street. German equities can be found among European top performers with DAX index trading over 2% higher.
There are no major data releases scheduled for today therefore investors should look towards news headlines for hints. EU-UK Brexit talks resumed today and it is said that this round of negotiations will be final as the time is running out. Apart from that, some central bankers from Fed, ECB and BoE are scheduled to speak later in the day.
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Source: xStation5
DE30 is currently making the biggest upward correction in a current downswing. The German index broke above the 12,700 pts handle near 61.8% retracement earlier today and is looking towards the resistance zone marked with the 12,800 pts mark and the 50% retracement of the downward move started in mid-September. Staying above the 12,700 pts would mean painting a higher high, what would additionally strengthen the bull case. Should the index clear resistance at 12,800 pts, an attack on the 13,000 pts mark (38.2% retracement) could be on the cards.
Company News
Dieter Zetsche, a former CEO of Daimler (DAI.DE), announced that he will reject the Board's proposal to name him new chairman of Daimler. The move came as a surprise as Zetsche was believed to take over as Chairman at the end of March 2021, when the term of current Chairman expires. Joe Kaeser, outgoing CEO of Siemens and current Board member of Daimler, is speculated to be one of the new candidates considered for the post.
Rheinmetall (RHM.DE) and the Dutch army have renewed a long-term agreement on supply of various types of ammunition. Agreement was struck for at least ten years and may involve payments of around €50 million per year.
Commerzbank (CBK.DE) has named Manfred Knof as its new Chief Executive Officer. Knof has been head of Deutsche Bank's private banking unit earlier. New CEO will take over starting from January 2021.
Siemens (SIE.DE) said that it does not see an urgent need to make any major acquisitions anytime soon.
DAX members at 10:12 am BST. Source: Bloomberg
