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European markets trade slightly higher
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DE30 pulls back from resistance at 13,125 pts
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Covestro (1COV.DE) with better than expected preliminary results
European markets are trading higher during the first day of a new week. Economic calendar is empty today with just a few central bankers' speeches scheduled. Politics are likely to be high on the agenda this week with continued disagreement over the US stimulus deal as well as approaching Brexit deal deadline (EU summit to be held on October 15-16). Apart from that, big US banks will start publishing their Q3 earnings reports this week.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is trading higher on Monday but has given up a bulk of gains made in pre-session trading. German index tested the resistance zone at 13,125 pts but was unable to break above it. The near-term support to watch is marked with the 50-hour moving average (green line, 13,030 pts area). More important support can be found around 1% lower at 12,950 pts - the lower limit of the Overbalance structure (purple box). In theory, breaking below this hurdle would signal that a short-term trend has turned bearish.
Company News
According to preliminary results, Covestro (1COV.DE) had EBITDA of €456 million in Q3 2020 against expected €373 million. Sales missed expectations slightly as they came in at €2.76 billion (exp. €2.847 billion). Core volume growth stood at 3% YoY. Company will release a full earnings report on October 27. Covestro expects full-year EBITdA of €1.2 billion, at the top end of the previous forecast range. Full-year core volume growth is expected to be below previous year's level (2% YoY).
Daimler (DAI.DE) is trading higher today, thanks to upgrades at Goldman Sachs. Goldman Sachs boosted recommendation for the German carmakers from "sell" to "buy". Price target was raised from €40 to €60.
Airbus (AIR.DE) delivered 57 planes in September. This is the highest monthly delivery figure so far this year and marks a 50% jump from August figures. Majority of September's deliveries were narrowbody jets.
Covestro (1COV.DE) jumped above the resistance zone at €46.50 in mid-September on takeover rumours. However, gains were quickly erased and the stock dropped towards the lower limit of the Overbalance structure (yellow box) and the support zone at €41.35. Following recovery, Covestro is making another attempt of breaking above the resistance at €46.50. Source: xStation5
