Summary
- European equities trade mixed on Thursday
- DE30 tries to break above the 11800 pts handle
- Carriers in Indonesia may abandon Airbus (AIR.DE) orders
Beginning of Thursday’s European session can be labelled mixed with lack of common direction across the stock markets on the Old Continent. Gains can be spotted in the eastern part of the continent as well as in Spain, Italy and France. On the other hand, German, UK and French indices underperform. However, the latter group tries to recoup losses following upbeat PMI readings. German and French prints came in above estimates but it should be noted that the German manufacturing gauge remains deep in contraction territory.
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DE30 continues to struggle in the vicinity of the resistance zone ranging 11800-11840 pts. The German index tried to break higher a few times this week but neither attempt was successful. In case we finally see a move above the price zone, the next resistance in line will be the 11920 pts handle. On the other hand, deeper pullback could take the index to as low as the 33-period exponential moving average (green line, 11680 pts). Source: xStation5
Deutsche Bank managers need permission to hire?
Executives of the Deutsche Bank (DBK.DE) seem to be dead serious about the cost cutting measures undertaken at the lender. According to the Reuters report, managers of divisions are now required to ask CEO, Deputy CEO or CFO of the Group for permission to fill any arising job vacancies. Moreover, only positions that are “critical” for the Bank should be considered for filling and reported to the aforementioned executives. Let us recall that the Deutsche Bank plans to slash headcount by as much as 18 thousand jobs, or around 20% of the employees, by the end of 2022. The requirement to ask top management for permission to hire will be in force until the end of the current year.
DAX stocks at 9:01 am BST. Source: xStation5
Company News
According to the Indonesian newspaper, Bisnis Indonesia, the country's government has asked domestic airlines to halt purchases of Airbus (AIR.DE) aircraft. The move is said to be a retaliation for the EU’s decision to curb imports of the Indonesian palm biodiesel. Trade Minister of Indonesia is said to have asked some of the carriers to switch orders to Boeing (BA.US).
Evotec (EVT.DE), the German biotech company, is trading higher today following an upgrade it has received at the Deutsche Bank. The German lender raised recommendation for the stock to “buy” and set a price target of €25 - around 25% above yesterday’s closing price.
Osram Licht (OSR.DE) gave green light to AMS to submit a formal takeover offer. The offer is a higher one than previously submitted bid from Bain Capital and Carlyle Group. Two private equity firms may now decided to raise their offer and, as a result, start a bidding war.
