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European markets trade higher after yesterday's rout
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DE30 bounces of a mix of supports
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European car sales surprise in September
European stock markets are trading higher in an attempt to recover from yesterday's declines. Gains can be spotted all across the Old Continent with few exceptions - Spain, Belgium and Russia. Investors await the decision of Boris Johnson whether to continue Brexit talks or not. Market feeling is that talks will continue. US retail sales data (1:30 pm BST) and Michigan (3:00 pm BST) consumer sentiment are key releases scheduled for today.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 slumped yesterday on lockdown fears. Decline was halted at a crucial support zone marked by 78.6% retracement of early year drop, upward trendline and neckline of head and shoulders pattern. German index is trading higher today although moves have been fairly muted so far. Announcement of the UK decision could spur some additional volatility so traders should keep on guard. Psychological 13,000 pts mark should offer first major resistance while "shoulders" of technical pattern at around 13,100 pts should be seen as the next obstacle in line. The aforementioned mix of supports in the 12,550 pts area remains a key target to watch for bears. Breaking below could trigger a drop towards the 200-session moving average in the 12,100 pts area.
DAX members at 10:26 am BST. Source: Bloomberg
Company News
German automotive stocks - Daimler (DAI.DE), Volkswagen (VOW1.DE), BMW (BMW.DE) and Continental (CON.DE) - are trading higher today following solid data from Europe. European Automobile Manufacturers Association said that European car sales increased 1.1% YoY in September. This is the first gain in year-over-year terms in 2020. Italy and Germany saw the biggest increases while sales in Spain were down 13% YoY.
Thyssenkrupp (TKA.DE) jumped today after Liberty Steel placed a bid for the company. Liberty said that it made a non-binding bid for the German company. Proposed price was not disclosed however. Thyssenkrupp shares jumped over 20% on the news.
Thyssenkrupp (TKA.DE) jumped on takeover news today. However, gains began to be erased as the session passed. Daily low was reached at €4.65 - the level of the previous local peak. Near-term resistance can be found at €5.45 - previous price reactions and 50-session moving average (green line). Source: xStation5
