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European markets pull back slightly on Tuesday
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DAX trades flat near 50-hour moving average
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Banco Santander may buy remaining business of Wirecard (WDI.DE)
European stock markets trade either flat or slightly lower on Tuesday as indices erase part of gains triggered by vaccine announcement from Moderna yesterday. Some interesting macro readings are scheduled for the early afternoon including US retail sales at 1:30 pm GMT and US industrial production at 2:15 pm GMT. Apart from that, earnings results from 3 US retailers (Walmart, Kohl's and Home Depot) will provide additional hints on the strength of US consumer in Q3 2020.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 surged yesterday on the back of positive vaccine news from Moderna. However, this was not enough to allow the German index to break above a key near-term resistance zone at 13,250 pts. Index pulled back towards the 50-hour moving average that acted as a support before (orange circle) and formed a floor at 13,070 pts - level of yesterday's low. DE30 has been slowly marching higher in the run-up to today's European cash open but was unable to distance away from the aforementioned moving average. A strong break in either direction could hint at a price move of around 150 pts as distance to both near-term support (12,950 pts) and near-term resistance (13,250 pts) is nearly equal. Markets continue to look past the deteriorating pandemic situation in the United States and focus on positive news, like vaccine announcements, therefore bulls may remain in advantage. On the other hand, breaking out of the 12,950-13,250 pts range may require a strong catalyst.
Company News
Collapsed German payments company Wirecard (WDI.DE) is trading over 10% higher today. According to the Bloomberg report, Banco Santander is in talks to buy the remainder of Wirecard's core business in Europe, including Wirecard Bank and a few other subsidiaries. Insolvency administrator has set a minimum price of €100 million for this part of business but Bloomberg reports that Santander may be willing to pay substantially more than that.
Tesla shares quoted on the German stock exchange - TSLA.DE - are rallying today following announcement from S&P Dow Jones Indices yesterday. US electric vehicle manufacturers will join the S&P 500 index in December before the opening of the Wall Street session on December 21st.
DAX members at 10:14 am GMT. Source: Bloomberg
