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European markets continue upward move
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DE30 eyes test of record highs
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BMW sold record number of BMW-brand cars in 2021
European stock markets are trading higher on Wednesday with German DAX (DE30) coming within striking distance of its record highs.German index is the best performing blue-chips benchmark from the Old Continent today. Cyclical stocks lead today's gains in Europe with automotive and chemicals being top performing sectors in Euro Stoxx 600 index.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 continues the upward move with a break above the 16,200 pts handle during today's European morning trade. German blue-chips index trades just 60-70 pts below its record high in the 16,290 pts area. In case we see a break to fresh records, the 16,535 pts area could be the next target for bulls. This area is marked with a textbook range of a breakout from the double bottom pattern. Two events to watch today for stock traders are the release of the ADP employment report at 1:15 pm GMT and the release of FOMC minutes at 7:00 pm GMT. The latter is more important as it may offer some hints on whether US central bankers have already discussed trimming its balance sheet or not.
Company News
BMW (BMW.DE) announced that car sales in its BMW brand reached a record high in 2021. In spite of prevailing semiconductor shortages, the German carmaker managed to sell 2.2 million BMW-brand cars last year. BMW also sold more than 100 thousand electric vehicles in 2021.
Daimler (DAI.DE) recalled 800 thousand vehicles in early-December due to coolant pump malfunction. However, recall is being delayed as the company does not have enough parts to repair malfunction in recalled cars due to supply chain bottlenecks.
Analysts' actions
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Continental (CON.DE) downgraded to "neutral" at JPMorgan. Price target set at €110
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ElringKlinger (ZIL2.DE) upgraded to "overweight" at JPMorgan. Price target set at €16
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Deutsche Wohnen (DWNI.DE) upgraded to "buy" at Kepler Cheuvreux. Price target set at €49.50
In spite of semiconductor shortages, BMW (BMW.DE) managed to sell a record number of BMW-brand cars in 2021. Stock is testing the resistance zone at €95.50, marked with 2021 highs. The ongoing upward move was launched after a double bottom pattern was painted in the €83.50 area. Textbook breakout range of this pattern points to a potential upward move to as high as €100.50 - the highest level since late-2015. Source: xStation5
