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European markets try bounce after sell-off
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DE30 gives up most of morning gains
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Deutsche Post explores options for long-distance drones
European stock market indices halted sell-off and managed to recover part of declines. Major indices from Western Europe were trading over 1% higher at the beginning of today's cash session. However, most of the gains have been erased by now.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 halted yesterday's declines at the support zone ranging around 78.6% retracement of the upward impulse launched in the first half of May 2021. Index recovered today and was trading over 1% higher near the price zone marked with 50% retracement. However, moods began to sour later on and a major reversal occurred. Index pulled back below the 61.8% retracement, signalling that a retest of the 78.6% retracement area may come. As one can see on the chart above, DE30 very often respects price zones marked with retracement levels and those are major levels to watch in the near-term. Economic calendar is empty today but volatility may jump once US traders arrive on the markets in the afternoon.
Company News
Volkswagen (VOW1.DE) said it will halt production of Passat sedan cars in the United States in 2022. Passat cars have been sold in the United States since the 1970s (first under Volkswagen Quantum name) but as demand for sedans continued to decline, German carmaker decided to focus on SUVs and EVs.
RWE (RWE.DE) informed that recent heavy floods in Germany have damaged some of its plants. Some plants operate at reduced capacity while production at others was halted completely. RWE estimates that damages will amount to "mid-double-digit euro millions". Company also said that it donated €1 million to support emergency programmes for Germans affected by floods.
According to a Reuters report, Deutsche Post (DPW.DE) plans to start using drones for longer distances. The company is in talks with Bulgarian aircraft developer Dronamics over drones capable of cross-border flights. Drones designed by Dronamics have 2,500 kilometer range and can carry cargo weighing up to 350 kilograms.
RWE (RWE.DE) plunged below the mid-term price zone ranging between 50% retracement and €30 mark. Shares deepen decline today and test support zone ranging around €28.80 mark. Stock is trading at 13-month lows and dropping below the aforementioned support could pave the way for a test of the 61.8% retracement of the upward impulse launched in May 2020 (€27.50 area). Source: xStation5
