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European indices trade lower on Friday
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DE30 breaks above 12,550 pts
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BMW (BMW.DE) to put greater emphasis on in-car microtransactions
European stock markets are trading slightly lower today. German DAX trades flat UK FTSE 100 and French CAC40 drop. Dutch AEX is an exception as it posts 0.2% gain. Traders should expect subdued liquidity conditions throughout the day as US markets will stay shut today.
German Chancellor Angela Merkel said that negotiations on the EU recovery fund are difficult. Merkel said that time is slowly running out as an agreement should be struck ahead of summer break in EU politics. Note that a summit is expected to be held on July 17-18 and a deal could be struck there. However, unless some common ground is found ahead of the summit, European leaders may be unable to reach consensus.
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Source: xStation5
DE30 extended gains yesterday in the afternoon after the US Bureau of Labor Statistics released a much better than expected labour market report for June. German index managed to smash through the price zone ranging around 78.6% retracement of February-march sell-off (12,550 pts area) but upward move eased later on. The index may move sideways today amid limited liquidity conditions in a 12,550-12,630 pts range. Note that the 12,630 pts handle was tested twice recently and has managed to stop buyers in both cases. In case we see a break above the upper limit of a range, focus will shift to resistance at 12,740 pts. Nevertheless, absence of US traders and lack of major data releases suggest that we will not see much volatility in the later part of the day.
DAX members at 10:06 am BST. Source: Bloomberg
BMW (BMW.DE) presented a plan for overhaul to its digital systems. The most interesting part is that the German carmaker plans to make bigger use of in-car microtransactions. Tesla is taking a similar approach as it allows customers to purchase additional software features. This could prove to be a solid revenue stream depending on how important those features will be to comfort of driving a car.
Oliver Baete, CEO of Allianz (ALV.DE), said that he expects insurance company's business to recover in 2021 unless a second major outbreak of Covid-19 occurs. Executive hopes that Allianz can achieve its original goals for 2021 after abandoning €11.5-12.5 billion profit target in 2020. On the other hand, due to stay-at-home orders, Allianz may need around a third less office space than before the pandemic.
Delivery Hero (DHER.DE) issued an update on the impact of Covid-19 pandemic. The company said that after a dip in April, orders grew significantly in the remainder of Q2 2020. June saw 104% growth YoY.
Allianz (ALV.DE) broke above the upper limit of the consolidation it has traded in since mid-June. The stock is making a retest of the price zone at €184 and in case bulls defend it, an upward move towards €190 may be on the cards. Source: xStation5
