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European stock markets trade lower
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DE30 defends 15,530 pts area
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Vonovia officially launched takeover offer of Deutsche Wohnen
Major stock market indices from the Old Continent trade a touch lower on Wednesday. European indices launched today's cash session flat but started to lose ground later on. Mixed PMI data from Europe (French miss, German beat) did little to change the sentiment. US PMIs will be released at 2:45 pm BST but those rarely have a major impact on the markets.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 broke above the 15,530 pts resistance zone at the beginning of the week but struggled to maintain momentum and break above the 15,635 pts swing area. Index dipped at the beginning of today's trading and tested the aforementioned 15,530 pts area as a support. Note that today's performance of the index is strikingly similar to yesterday's as DE30 also dropped to the 15,530 pts zone at the beginning of Tuesday's session. Given that bulls seem to have defended the area, an upward impulse may be on the cards. In such a scenario, the 15,635 pts zone is the near-term resistance to watch.
Company News
Vonovia (VNA.DE) announced that it is officially launching a public takeover offer of its rival Deutsche Wohnen (DWNI.DE). Vonovia aims to acquire all outstanding shares of Deutsche Wohnen and offers a price of €52 per share. Offer period is expected to end July 21. Should it go through, a €19 billion takeover would create the largest European residential real estate company. Vonovia expects the acquisition to result in annual cost synergies of €105 million by 2024. There is no major reaction on Deutsche Wohnen shares as potential for acquisition and price offer was hinted by the company back in May.
According to a Business Insider report, Daimler (DAI.DE) is exploring options to manufacture batteries used in EVs on its own. Decision comes as a 2019 agreement between Daimler and Farasis Energy is showing cracks. Under the terms of the agreement Farasis was to build a battery factory in Germany but construction has not commenced yet. Moreover, sample battery cells provided by Farasis are said to have not matched Daimler's expectations.
Daimler (DAI.DE) is trading lower today on the back of overall deterioration in moods. Stock tested resistance zone ranging around €80 handle but has failed to break above. The €78.30 area marked with previous price reactions and the 200-session moving average is the nearest support zone to watch should the sell-off deepen. Source: xStation5
