DE30: Indices erase gains on extended lockdown rumours

• European markets trade flat

• DE30 near daily lows on extended lockdown rumours

• Deutsche Bank may cut ties with Trump Organization

European markets are trading more or less flat on Tuesday. DE30 has looked towards the 14,000 pts mark but pulled back following recent media reports. According to Bild, Angela Merkel thinks that German needs 8-10 more weeks of strict lockdown to contain coronavirus. That would mean that restrictions would be left in place until early-April.

Source: xStation5

DE30 has made another test of the resistance zone ranging between 13,980 pts and 61.8% retracement of recent correction (14,000 pts) at the beginning of today's European cash trading. However, the index pulled back following media reports saying that German lockdown may last until early-April. German index is trading near daily lows and is testing 38.2% retracement at around 13,920 pts. Should we see a break below this hurdle, downward move may extend towards the support at 13,875 pts swing area. 

Company News

Last week's attack on Capitol Hill has prompted numerous companies, mostly from the United States, to reconsider their political donations. According to New York Times, Deutsche Bank (DBK.DE) has gone further. NYT claims that Deutsche Bank decided not to do business with Donald Trump and companies controlled by him. Deutsche Bank has around $340 million of loans outstanding connected to Trump and is top lender for the Trump Organization. The move comes as the relationship with the current US President draws negative publicity to the German lender.

RWE (RWE.DE) plans to start construction of a new wind farm in the former mining site in Germany. Construction is expected to begin in spring 2021. New wind farm will have a capacity of 28.5 MW and is expected to start operations in early-2022.

Delivery Hero (DHER.DE) launched a venture capital fund aimed at driving innovation in food and delivery sectors. Fund has an initial capital of €50 million and will operate globally.

Shares of RWE (RWE.DE) accelerated upward move following a break above the price zone ranging below €35 handle. However, advance was halted by the 127.2% exterior retracement of early-2020 decline last week and the stock has been pulling back slightly this week. The support to watch can be found at the aforementioned €35 mark, where the lower limit of the Overbalance structure is located. Source: xStation5