DE30 pulls back below 14,575 pts resistance zone

• European stock markets trade higher

• DE30 pulls back below 14,575 pts resistance zone

• Allianz found buyer for majority stake in Russian business 

European stock markets are trading higher during the final market session of the week. However, indices from the Old Continent have pulled back from daily highs reached earlier in the day and now trade just slightly above yesterday's closing prices. Polish WIG20 (W20) is a top performer, trading 0.7% higher at press time. Traders should keep in mind that indices may experience a jump in short-term volatility near US jobs report release time (1:30 pm BST).

Source: xStation5

Technical situation on DE30 has changed little over the past day. The German index managed to retest the resistance zone ranging around 14,575 pts and even broke above it for a brief moment. However, bulls failed to hold onto these gains and DE30 pulled back below the aforementioned price zone today. A lot will now depend on whether it is just a brief pullback or whether the index will return below the 14,575 pts zone for longer. If the latter option is considered, a pull back towards a recent low at 14,330 pts area cannot be ruled out. 200-session moving average (purple line) and lower limit of the Overbalance structure in the 14,050 pts area mark key near-term support.

Company News

Allianz (ALV.DE) agreed to sell a majority stake in its Russian business to Interholding. Allianz will continue to hold a 49.9% in the entity. Financial details were not disclosed but Allianz said that the sale will have a €400 million negative impact on its profit and loss account.

According to a Handelsblatt report, Fresenius (FRE.DE) plans to cut around 5% of its workforce at its Kabi subsidiary, or around 2,000 positions. This is said to be a part of a cost-saving drive.

Reuters reports that Rheinmetall (RHM.DE) made a non-binding offer for a minority stake in a unit of Leonardo, an Italian defense company. An offer was made for a stake in a unit that produces small- and large-caliber naval guns. Rheinmetall values that stake at €190-210 million.

Analysts' actions

• Brenntag (BNR.DE) upgraded to "buy" at Baader Helvea. Price target set at €102.00

• Wacker Chemie (WCH.DE) upgraded to "hold" at Societe Generale. Price target set at €173.00

• Rheinmetall (RHM.DE) upgraded to "buy" at Warburg. Price target set at €240

Brenntag (BNR.DE) launched today's trading higher, thanks to an upgrade at Baader Helvea. However, stock started to pull back following the session launch. The near-term levels to watch are support in the €70 area and resistance in the €74 area, marked with downward trendline. Source: xStation5