DE30: European stocks trade mixed after ECB stimulus

• ECB announced massive stimulus

• DE30 erases morning jump

• BMW (BMW.DE) says production in China at 60% in March

Moods on the European stock exchanges improved significantly after the ECB decided to unleash a new asset purchase programme. Gains could have been spotted all across the Old Continent with Italian FTSE MIB outperforming the most. Banks make up a big share of the index and they gain on rebound in Italian bonds. However, bulls lost some ground as the time passed.

European Central Bank announces massive stimulus

ECB decided to implement a new asset purchase programme in an attempt to calm markets amid ongoing turmoil. The Pandemic Emergency Purchase Programme is aimed at ensuring borrowing costs within the European economy remain low and get through to business and consumers. ECB said it is ready to buy up to €750 billion in public and private bonds by the end of the year.The Governing Council warned that it may increase purchases in case the situation requires it.

Source: xStation5

DE30 continues to enjoy volatile swings. The index painted a fresh multi-year low overnight as it tested the 8,000 pts mark. However, the German index managed to recover around 500 points by the start of the European cash session. Resistance surfaced at recent swing level of 8,600 pts and we can observe a pullback at press time. The nearest support to watch can be found at yesterday’s afternoon low of 8,200 pts. The aforementioned 8,000 pts level is the final support to watch. On the topside bulls should focus on the 8,600 pts resistance. The 9,150 pts level is the upper limit of the Overbalance structure and the final resistance for now.

DAX members at 9:43 am GMT. Source: Bloomberg

Deutsche Lufthansa (LHA.DE) is today’s DAX leader. The company benefits from the overall improvement in moods. Apart from that, company-specific newsflow is not too upbeat. The German carrier will ground 700 planes and cut 95% flights. The company also said that the airline industry may not survive without state aid.

HeidelbergCement (HEI.DE) said that due to fast spread of the coronavirus the company is unable to give a valid forecast for 2020 business year. The company also decided to postpone the Annual General Meeting scheduled for May 7 to a later date.

CEO of BMW (BMW.DE) said that production volumes at plants in China stand at around 60% in March.

HeidelbergCement (HEI.DE) lost around a half of its value over the last few weeks. The stock is making a break below the support zone at €31.00 this week and unless moods on the global markets improve it may be set to test late-2011 low at €25. Source: xStation5