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European markets struggle to find direction
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DE30 hovers near 15,200 pts mark
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TUI plans to raise €350-400 million via convertible bond issue
European markets are trading little changed during the final trading session of the week. Majority of the European blue chip indices trade within -0.2% and +0.2% of their yesterday's closing prices. Some weakness can be seen in the eastern part of the Old Continent with Polish and Russian equities being today's underperformers.
German industrial production data for February was released today at 7:00 am BST and it turned out to be a major disappointment. Production declined 1.6% MoM while market expected a 1.5% MoM increase. This comes after a 2% MoM decline in January (revised upward from -2.5%)
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DE30 looks to be stuck within a sideways move in the 15,175-15,240 pts trading range. The index has been unable to produce a bigger move in either direction this week. However, if the index manages to leave the range, a large move may occur on the breakout. Depending on the direction of the break, traders should then focus on 15,300 pts (ATH area, resistance) or 15,123 pts (23.6% retracement, support). Keep in mind that there are no major readings scheduled for release today therefore DE30 may be set to continue calm trading throughout the day. Source: xStation5
Company News
TUI (TUI.DE) announced that it aims to raise €350 million by issuing convertible bonds due 2028. Company said it reserves an option to increase the issue to €400 million.
Airbus (AIR.DE) delivered 125 aircraft in the first quarter of 2021, thanks to an acceleration in deliveries in March. Airbus has received 39 new orders during the first 3 months of 2021. However, net orders during the quarter stood at negative 61 as airlines around the world continue to scale down orders as the pandemic situation remains uncertain.
According to the Handelsblatt report, Porsche (PAH3.DE) is considering making adjustments to its production rates amid shortages of semiconductors.
Airbus (AIR.DE) reached a fresh intraday, post-pandemic high today. However, stock continues to struggle with breaking above the resistance zone marked by the 61.8% retracement of the pandemic drop. Share price looks to be respecting Fibonacci retracement therefore if a break above the aforementioned resistance occurs, bulls may look towards 78.6% retracement at €119.50 as their next target. Source: xStation5
