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European markets trade lower
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DE30 tests short-term swing level at 14,745
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Volkswagen common shares drop 10%
European markets trade slightly lower following a heavy sell-off on Wall Street yesterday. However, moves have been rather calm. Germany, Italy and France decided to resume AstraZeneca jabs putting European vaccine rollout back on track. There are no major report scheduled for release today so trading may be a bit muted. Second day of US-China talks is unlikely to result in any major statement given how lacklustre talks were yesterday.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has pulled back from a recent all-time high amid yesterday's sell-off on Wall Street. However, decline in case of the German index is relatively small as it trades around 0.5% lower on the day. The index is testing the short-term swing area at 14,745 pts. In case the index fails to break above this level and pulls back, a potential head and shoulders pattern with neckline at 14,680 pts will surface. Breaking below the neckline may trigger a downward move of around 100 points. Final support can be found at 14,470 pts and is marked with the lower limit of the market geometry.
Company News
Price rally on Volkswagen common stock (VOW1.DE) looks to be breaking down. Stock trades 10% lower today and around 18% below yesterday's intraday high. Meanwhile, Volkswagen preference shares (VOW3.DE), a share class included in DAX index, trade 1.3% higher today.
Adidas (ADS.DE) and other footwear companies are trading lower after Nike reported lacklustre results for fiscal Q3 2021(December 2020 - February 2021). Nike missed sales estimates and said that supply chains issues negatively impacted its business in North America. Moreover, Nike said that it has seen weak sales in Europe during the period as countries reimposed coronavirus restrictions.
According to Handelsblatt report, German finance ministry proposed 3 candidates for the post of chairman of Commerzbank (CBK.DE) - Andres Schmitz (former head of HSBC German unit), Ingrid Hengster (executive board member of KfW) and Guenther Breunig (head of KfW bank). Schmitz and Hengster are seen as favourites.
Analysts' actions
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RWE (RWE.DE) upgraded to "buy" at LBBW. Price target set at €34.80
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Price target for HeidelbergCement (HEI.DE) raised from €82 to €88 at Deutsche Bank. Rating held unchanged at "buy"
Adidas (ADS.DE) deepens decline following lacklustre results from Nike. Stock is moving below €285 pts price zone and the 50-session moving average today. In case buyers do not manage to halt sell-off, the next target for bears could be the €270 area, where 200-session moving average, previous price reactions and upward trendline can be found. Source: xStation5
