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European markets trade higher on Wednesday
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DE30 jumps above 13,500 pts
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HeidelbergCement mulls sale of assets in California
European markets trade higher on what is in many cases the final full trading day ahead of Christmas. A pullback was observed on the futures markets over the night as US President Trump refused to sign an economic relief package and demanded higher stimulus checks. However, moods improved as European cash open approached and currently indices, like for example German DAX, trade above yesterday's highs.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 recovered from overnight decline and jumped towards the 13,500 pts mark at the start of the European cash trading. The German index pulled back after the first attempt of breaking above but is making another one at press time. Panic triggered by a new strain of coronavirus did not last long and DE30 has already managed to jump above the 61.8% retracement of the drop from last week's post-pandemic highs. The next resistance in line to look for can be found at the 78.6% retracement in the 13,600 pts area, where previous price reactions are also located. DE30 will not trade tomorrow and on Friday as stock exchange will remain shut for Christmas.
Company News
According to the Bloomberg report, HeidelbergCement (HEI.DE) is mulling a sale of its assets in California. Sale could result in proceeds of around $1.5 billion. Bids for assets are expected to be presented in 2021.
Real estate division of Allianz (ALV.DE) bought a 75% stake in a real estate portfolio in London's West End. Portfolio is made up of three office buildings and the stake was bought for 401 million pounds. Transaction is expected to close in January 2021.
According to the Bloomberg report, Deutsche Bank (DBK.DE) is considering boosting bonuses of fixed-income traders following a stellar year for the unit. Investment bank, that includes trading unit, turned out to be the top division for the Bank in 2020 and has generated the most revenue. Bonuses could be increased by around 10% but the final decision has not been made yet. Similar moves were made by JPMorgan, Goldman Sachs as well as Barclays.
HeidelbergCement (HEI.DE) reached fresh post-pandemic highs today. The stock has been trading in an upward channel for over half a year with a few false breakouts. A point to note is that share price is reacting to Fibonacci retracement of the early-year drop. Price zone ranging around 78.6% can be seen as a near-term support as it has halted declines recently and coincides with the lower limit of the channel. Upper limit of the channel at around €64 can be seen as a near-term resistance. Source: xStation5
