DE30: Low volatility on the European stock market

• European indices slightly lower
• Investors await the ADP report 

During today's session we observe low volatility in the stock market. Major European indices are trading slightly below yesterday's session close. German PMI Services final report was released this morning but there was not much reaction on the market. No change to the initial estimates as the German services sector returns to growth in May after having stagnated in April. 

Let's take a look at the German DAX (DE30). Looking at the H1 interval, the index painted new historic highs on June 1. However sellers manage to halt upward move at the 127.2% Fibonacci retracement of the recent downward correction. According to the harmonic analysis, the Butterfly pattern appeared on the chart. This formation often heralds a trend reversal. Nevertheless the downward move stopped at the key intraday support at 15,545 pts, which is a result of local 1:1 structure. As long as the price sits above, market bulls are in advantage and another upward impulse may be about to start. On the other hand, should sellers manage to negate aforementioned market geometry, the bigger downward correction may start.

DE30 H1 interval. Source: xStation

According to Reuters, Volkswagen (VOW1.DE) delivered eight electric cars to Astypalea on Wednesday in a first step towards turning the Greek island's transport green, a model the government hopes to expand to the rest of the country. Prime Minister Kyriakos Mitsotakis, who has made green energy a central plank of Greece's post-pandemic recovery drive, attended the delivery ceremony along with Volkswagen Chief Executive Herbert Diess. The cars will be used by the police, coastguard and at the local airport, the beginnings of a larger fleet aimed at replacing about 1,500 combustion-engine cars with electric models and reducing vehicles on the island, a popular tourist destination, by a third.

According to Bloomberg, Germany is considering participating in a planned 3 billion euro ($3.7 billion) capital increase at Lufthansa (LHA.DE), Finance Minister Olaf Scholz told Reuters on Wednesday, a move that could help to repay the airline's state-backed bailout. Reuters last month reported that Lufthansa was working with Deutsche Bank and Bank of America on plans for a capital increase in either the summer or autumn.

Lufthansa (LHA.DE) launched today's trading with a little bullish gap, but sellers quickly took the lead. The stock bounced off the resistance resulting from the local sloping trendline near €11.24 which remains the key hurdle in the short term. The support area is located at €10.10 where the local lows are located.Source: xStation5