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European markets trade mixed
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DE30 recovers from last week's sell-off
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Bayer loses appeal in Roundup trial
Following a mixed Asian session, mixed moods can also be spotted during the first trading day of the week in Europe. Blue chips indices from UK, France and the Netherlands trade lower, German equities trade flat while shares from Poland, Portugal and Italy advance. Economic calendar is quite empty today but investors will get to hear from some Fed and BoE members in the afternoon and it may boost short-term volatility.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has managed to fully recover from last week's sell-off. German index tested highs from May 10 in the 15,470 pts area this morning but has been unable to break above it so far. Subsequent pullback pushed the index towards the 15,400 pts mark, which has acted as a short-term floor since. While investors shrug off inflation concerns, the index seems to lack catalyst for a larger move. Traders should be wary of a potential sideways move until such catalyst arises. The near-term resistance can be found at the aforementioned 15,470 pts while the near-term supports can be found at 15,400 and 15,330 pts (78.6% retracement).
Company News
Bayer (BAYN.DE) is trading lower today after a federal appeals court upheld judgment against the company in one of Roundup trials. Court upheld the judgement saying that the company has to pay $5 million in compensatory damages and $20 million in punitive damages. The case was one of the first so-called "Roundup bellwether trials" in the United States.
Almost half of Vonovia (VNA.DE) shareholders choose an option to receive dividends in new company shares. This means that company will issue around 9.37 million new shares and save around €470 million in cash that would otherwise be spent on cash dividends. Vonovia declared €1.69 dividend per share for the previous year.
Lufthansa (LHA.DE) expects its subsidiary Swiss International Air Lines to return to profitability by the mid-2021. Company announced an additional reduction of 780 jobs in the subsidiary as well as reduction of its fleet by up to 15%.
Vonovia (VNA.DE) halted steep downward move at the support zone ranging above the 50% retracement of the recovery move launched in March 2020. Stock is continuing recovery today by opening with a bullish price gap. While share price is off daily highs, it remains higher on the day. The near-term resistance to watch is marked with 38.2% retracement (€52.80). Source: xStation5
