-
European indices trade higher
-
DE30 approaches short-term trendline
-
RWE expects lower adjusted EBITDA in 2021
European stock markets trade higher on Tuesday as vaccine concerns ease. Indices took a hit yesterday in the afternoon after Italy, France and Germany suspended AstraZeneca vaccine shots amid reports of deadly blood clots. EMA is expected to rule on AstraZeneca vaccine on Thursday. Market today are recovering from yesterday's declines and does not seem to care about reports saying that Biden's stimulus will be financed with a corporate tax hike.
Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appDE30 started to trade sideways in the 14,470-14,600 pts price range. Index has painted 2 lower highs within the range and is now approaching short-term downward trendline once again. In case DE30 fails to break above it, a pullback towards the lower limit of the range at 14,470 pts may come next. Dropping below 14,470 pts would pave the way for a deeper decline towards support marked with the lower limit of the Overbalance structure at 14,265 pts. On the other hand, if the index managed to break above the trendline, all-time high area at around 14,600 pts will be the next resistance to watch.
Company News
Volkswagen (VOW1.DE) aims to sell 1 million electric vehicles this year and to become leader in EV market by 2025 at latest. Company forecasts that EV sales will account for 60% of total European sales by 2030.
According to Der Spiegel report, top management of BMW (BMW.DE) wants electric vehicles to account for 50% of carmaker's global output by 2030.
Hans-Joerg Vetter, chairman of supervisory board of Commerzbank (CBK.DE), resigned on the back of health reasons.
RWE (RWE.DE) expects adjusted EBITDA to drop from €3.2 billion in 2020 to €2.65-3.05 billion this year. Negative impact of a recent energy crisis in Texas is named as one of the reasons behind the expected drop. Arctic weather has shut down RWE's renewable energy projects in Texas and the company had to buy energy at sky-high market prices in order to meet contract obligations.
Shares of RWE (RWE.DE) halted the recovery move last week. Stock was unable to reach and break above the 200-session moving average (purple line) and headed lower. Note that as long as shares trade below the €34 area, where the limit of the market geometry can be found, main trend remains downward. Near-term support to watch can be found at €31.75. Source; xStation5
