DE30 reaches 4-week high as buying spree continues

• Global stock market continue to rally

• DE30 reaches 4-week high, attempts to hold above 2018 low

• Fresenius (FRE.DE) boosts production of drugs used in Covid-19 treatment

European stock markets are rallying for another day. German DAX gains more than 3% today after booking a gain of almost 6% yesterday. However, indices started to pull back at the end of the first hour of the session. Travel and leisure sector as well as industrial companies are leading in Europe on hopes that slowing spread of the coronavirus will see lockdown measures eased.

Eurogroup meets today

Finance ministers of the eurozone countries will hold a video meeting today at 2:00 pm BST. Goal of the meeting is to try to agree on joint actions aimed at limiting the negative impact of the coronavirus on European economy. The meeting is a follow-up to a summit held on March 26 that failed to bear fruit. The discussion will not only focus on what actions to take but also how to finance them. So-called "coronabonds" are seen as an option but some member strongly oppose the idea, especially Germany and the Netherlands. A post-meeting press conference is expected to start at 7:00 pm BST. However, some leaks may surface in the afternoon and markets may react to these.

Source: xStation5

DE30 benefited from the improvement in moods and finally managed to make a big break above the 10,000 pts handle. Moreover, the index also broke above the 38.2% retracement of the February-March drop. Gains continued today but were halted at the end of the first hour of European session and pullback started. DE30 is attempting to hold above the 10,400 pts handle that marks 2018 lows. The level should be viewed as a support and closing the day above it may keep bulls encouraged. In such a scenario, the zone around 50% retracement (10,900 pts) is the first resistance to watch. Next major resistance levels are also marked by retracements - 61.8% (11,550 pts) and 78.6% (12,550 pts). 

DAX members at 9:51 am BST. Source: Bloomberg

Continued improvement in coronavirus data relating cases and deaths in some hotspots raised hopes that the pandemic will be contained sooner than initially thought and that the economy may not take as big a hit as expected. This is reflected in today's solid performance of German industrial stocks like ThyssenKrupp (TKA.DE), Salzgitter (SZG.DE) or MTU Aero Engines (MTX.DE). All of these companies gain more than 8% today.

Fresenius (FRE.DE) said that its subsidiary, Fresenius Kabi, is ramping up production of drugs used in Covid-19 treatment. The company said that demand for medicines used for sedation and pain-relief has increased due to the coronavirus outbreak and it is the basis for the decision. Fresenius said that prices of these drugs will remain stable.

Wirecard (WDI.DE) announced that it has partnered with a leading e-commerce agency in Hungary, UNAS. Wirecard will become a payment service provider for UNAS and by doing so to its 5,000 thousand merchants.

Wirecard (WDI.DE) attempts to break above the zone at 50% retracement of the February-March slump. Note that after launching today's trade with a big bullish gap, the stock has traded in a narrow range hinting at indecisiveness. Should bears take over, a pullback toward the $104 area, where 23.6% Fibo level is located, cannot be ruled out. Source: xStation5