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Stocks in Western Europe trade lower
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DE30 failed to break above local high at 15,950 pts
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Deutsche Post acquires Hillebrand for €1.5 billion
European stock market indices are trading a touch lower on Wednesday. Indices from the eastern part of the Old Continent are top laggards with Russian RTS dropping 0.6% and Polish WIG20 declining 0.8%. Among today's European leaders one can find indices from Sweden, Portugal, Spain and Switzerland. FOMC minutes release at 7:00 pm BST is a key macro event of the day but market does not expect that it will turn out to be surprise and trigger large market moves.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 failed to break above a local high at 15,950 pts and is turned lower today. However, it looks like bulls have managed to halt decline near the 33-period EMA (H4 interval). Such a development boosts odds for the index to climb back above the short-term upward trendline and retest the aforementioned 15,950 pts area. Note that this also marks a neckline of a short-term double bottom pattern. Textbook range of the breakout from this pattern is around 115 points so DE30 would find itself on fresh all-time highs should it realize it.
Company News
Deutsche Post (DPW.DE) announced on Tuesday that it has agreed to acquire Hillebrand for €1.5 billion. Hillebrand is a drinks shipping company. This is the largest acquisition Deutsche Post has made since 2005 and will help strengthen its seaborne unit. Deutsche Post said that the drinks shipping business has a higher margin than its freight-forwarding business.
Wacker Chemie (WCH.DE) signed a supply agreement with a division of JinkoSolar Holding, one of the world's largest solar panel producers. Under the terms of the agreement, Wacker Chemie will supply JinkoSolar with 70 thousand tonnes of polysilicon between September 2021 and December 2026. Purchase price will be based on polysilicon market price.
Analysts' actions
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GEA Group (G1A.DE) upgraded to "hold" at DZ Bank. Price target set at €38
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Evotec (EVT.DE) downgraded to "hold" at FMR Frankfurt Main. Price target set at €39
Wacker Chemie (WCH.DE) rallied today after announcing a supply agreement with JinkoSolar. Stock trades over 3% higher on the day and has managed to jump above the resistance zone at €134.00. However, the upward move was halted at the next major resistance zone at €139.00 and the stock has pulled back below the €138.00 handle since. Source: xStation5
