DE30: European markets tick higher ahead of NFP release

• European markets trade higher

• DE30 fails to break above 200-hour moving average

• Germany extends backstop for credit insurers

European stock market indices are moving higher on the final trading session of the week. Reports saying that EU-UK deal is imminent provided a boost for equities during the European morning trade. However, this is the same message that markets have been served in the previous weeks therefore investors should take it with a grain of salt. Key risk event scheduled for today is the US jobs data release at 1:30 pm GMT and it is expected to show continued slowdown in the labour market recovery.

Source: xStation5

DE30 managed to deliver a strong upward move today in the morning. In turn, the index has broken above the short-term downward trendline. DE30 halted the upward move at the 200-hour moving average (purple line) and began correction. However, unless the index breaks back below the support zone at 13,250 pts, bulls should not be worried. Should it happen, recent low at around 13,200 pts will be a level to watch. Breaking below it would hint at a continuation of a downward move.

Company News

Germany has agreed to extend a backstop for credit insurers until the end of June 2021. Under the backstop, German government guarantees losses up to €30 billion. It was implemented in order to prevent bankruptcies amid the coronavirus pandemic. Scheme benefits companies like Allianz (ALV.DE) or Munich Re (MUV2.DE). However, extension requires a nod from the European Commision. 

Analyst actions

• Fraport (FRA.DE) upgraded to "buy" at Deutsche Bank. Price target set at €60

DAX members at 9:59 am GMT. Source: Bloomberg