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Stocks in Europe start the week lower
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DE30 recovers from morning dip
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Bayer signed agreement with US drugmaker Atara
Stocks in Europe are trading lower as it is looking increasingly likely that no Brexit deal will be made between the European Union and the United Kingdom. The Sun reported that Boris Johnson is ready to walk away from talks within hours while EU top negotiator Barnier said that deal talks are likely to end if no agreement is found today. However, most indices from the Western Europe managed to bounce off the daily lows.
German federal government will meet with heads of 16 states ahead of Christmas to discuss tighter coronavirus restrictions. Decision comes after the recently imposed partial lockdown failed to limit spread of the virus. Politicians will decide whether stricter nationwide restrictions are needed or tightening in hotspots will be enough.
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Source: xStation5
DE30 jumped at the start of today's session but upward move was halted below the 200-hour moving average (purple line). Index plunged later on the back of negative Brexit headlines. However, daily low was reached near the 13,150 pts swing level and recovery began. DE30 managed to climb towards today's opening level and is testing the 13,250 pts resistance at press time. Should it succeed with breaking above it, the aforementioned 200-hour moving average (13,300 pts area) could be the next target for the bulls. However, one should keep in mind that this moving average has managed to fend off the bulls twice recently.
Company News
Bayer (BAYN.DE) has signed an agreement with Atara Biotherapeutics, the US drugmaker. Under the agreement, Bayer will manufacture and sell experimental cancer therapy developed by Atara. Bayer will make an upfront payment of $60 million to the US company.
Delivery Hero (DHER.DE) is the top performing DAX member today after the media reported that Germany mulls tightening of the coronavirus restrictions. Food delivery company is one of the German "pandemic winners".
Deutsche Bank (DBK.DE) has signed a multiyear partnership with Google aimed at accelerating the lender's transition to cloud.
Delivery Hero (DHER.DE) is trading in a short-term ascending triangle pattern. The stock has reached the upper limit of the pattern at €101.50, marked with recent highs and 200-hour moving average (purple line). Potential range of the break from this pattern points to an upward move towards €109.00 area. Source: xStation5
