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European markets recover from morning dip
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DE30 climbs back above 12,900 pts
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RWE (RWE.DE) launches share issue
European stock markets started today's session lower. However, most of the indices from the Old Continent trade higher as a steady upward move started after the opening bell. Italian and Swedish equities are leaders in Europe while stock from Belgium, Austria and the Netherlands underperform. FOMC minutes release at 7:00 pm BST is a major risk event scheduled for today.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 surged yesterday and broke above the resistance zone at 12,950 pts. However, the upward move was halted near the local peak from August 11 at 13,035 pts. The index pulled back below the aforementioned price zone and started to trade sideways. A point to note is that a strong downward move at the start of today's session was once halted at 200-hour moving average (orange circle). DE30 is currently testing resistance at 12,950 pts but in case it fails to break above, the 200-hour moving average will be the first major support to watch. Breaking below the lower limit of the Overbalance structure at 12,800 pts would signal short-term trend reversal.
DAX members at 10:14 am BST. Source: Bloomberg
RWE (RWE.DE) launched a share issuance today. The company aims to increase capital by around €2 billion by offering 61.5 million shares to institutional investors. Proceeds will be used to finance acquisition of 2.7 billion GW in solar and wind power projects from Nordex as well as other company's activities. New shares are expected to start trade on Friday. RWE is the worst performing DAX member today.
Mexican unit of Volkswagen (VOW1.DE) has agreed on a 5.5% hike for workers' pay and benefits. The deal for years 2020-2021 includes around 3.6% increase in wages and around 1.8% increase in benefits.
TUI (TUI.DE) has announced a launch date for its river cruise service. Service was originally scheduled to premiere in summer but its launch has been delayed due to a coronavirus pandemic. Large-scale cruises are still banned by the UK authorities but restrictions on river cruises have been lifted. Service will launch on November 26 and offer cruises ranging from 3 to 14 days.
RWE (RWE.DE) opened lower today on share issuance news. Share price pulled back after painting a pin bar pattern yesterday at €34.25. A drop has been halted at 50-session moving average (green line) and recovery followed. Nevertheless, RWE still trades at a loss. Source: xStation5
