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European markets open higher but swing afterwards
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DE30 halts advance ahead of 14,000 pts
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Delivery Hero to sell 9.44 million new shares
European stock market indices started Thursday's cash session with major bullish price gaps. However, the beginning of trading has been quite volatile with the DAX index swinging in a 90-points range. US Congress officially certified Biden's election victory but it was largely expected and markets did not react to the news.
Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appDE30 managed to break above short-term 13,600-13,700 pts trading range yesterday and rallied to fresh all-time highs. An upward move was halted at the 127.2% exterior retracement of mid-December decline, just slightly below the psychological 14,000 pts mark. European equities play down yesterday's chaos in the US Capitol and focus on consequences of the 'Blue Wave' that is expected to be favourable for "old economy" stocks which make up a big share of the DAX index. The zone ranging between 127.2% retracement and the aforementioned 14,000 pts mark is likely to serve as a near-term resistance zone. Services ISM reading at 3:00 pm GMT is a potential risk event that could trigger bigger moves. It is expected to show a drop but similar expectations were for manufacturing reading on Tuesday and it showed a higher reading.
Company News
According to Bild report, Bayer (BAYN.DE) and CureVac have agreed to form a global Covid-19 vaccine partnership. Bayer will use its network to speed up distribution of CureVac vaccine once it gets approval.
Delivery Hero (DHER.DE) will offer 9.44 million new shares, representing 4.7% of capital. Offering will be priced at €132 per share, marking a 4.6% discount compared to yesterday's close. Proceeds from the sale are expected to reach €1.2 billion. New shares will have full dividend rights.
Analyst actions
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HeidelbergCement (HEI.DE) upgraded to "buy" at Societe Generale. Price target set at €75
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E.ON (EOAN.DE) upgraded to "buy" at DZ Bank. Price target set at €10.50
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BMW downgraded to "hold" at Deutsche Bank. Price target set at €75
DAX members at 9:16 am GMT. Source: Bloomberg
