DE30 recovers from a drop and eyes 13,400 pts

• Mixed moods during European morning trade

• DE30 slowly approaches post-pandemic high

• Deutsche Post has already delivered more parcels in 2020 than in full-2019

European markets started a new week lower. However, some of the indices, like German DAX or UK FTSE 100, managed to recover and trade slightly higher on the day. There isn't much on the agenda today. OPEC+ meeting is an important event but unless it triggers a massive move on the oil market we should not see a spillover to stock market indices. A point to note is that European equity markets are about to finish the best month since the Global Financial Crisis in terms of returns.

Source: xStation5

While DE30 started the day lower, it has managed to deliver a massive 200-point upward move during the European morning. The index trades at the highest level since the early September and is closing in on the post-pandemic high at around 13,450 pts. Should it succeed in breaking above it, bulls may target the 13,700 pts area - potential range of a breakout from the ascending triangle pattern. DE30 is trading around 2% higher year-to-date following an around 15% gain so far this month.

November's top movers from DAX index (returns based on Friday's close). Source: Bloomberg

German blue-chip companies are on the way to book their best month since April 2009, when the DAX index jumped 16.8%. German index is trading around 15.8% higher month-to-date at press time. It was expected that US elections would be the most important market factor in November but it turned out to be optimistic vaccine news. As a result, stocks that were the most heavy hit by the coronavirus pandemic, especially cyclicals, can be found among monthly outperformers (see the table above).

Company News

Deutsche Post (DPW.DE) said that it has already delivered more parcels this year in Germany than in the full-2019. Deutsche Post delivered 1.58 billion parcels in the whole 2019 while on Friday the company announced that it has already delivered 1.6 billion parcels in Germany in 2020. Company forecasts a 15% YoY growth in German parcel volumes, to around 1.8 billion.

Wacker Chemie (WCH.DE) is trading higher today. Company announced on Sunday that it is in advanced talks with GlobalWafers over the sale of its stake in Siltronic. Wacker Chemie has a 30.8% stake in Siltronic amounting to 9.24 million shares. The sale price of €125 is being discussed for a total deal value of €1.1-1.2 billion. Agreement is said to be nearly finalized and Wacker Chemie's supervisory board is likely to make a decision on it next week.

Deutsche Post (DPW.DE) is trading higher today and is slowly approaching the resistance zone at €42. Clearing this hurdle will pave the way for a test of the all-time high at €43.40. Source: xStation5