DE30 retests yesterday's highs near 15,800 pts

• Stocks in Europe trade mixed

• DE30 approaches yesterday's highs

• EU and US reach deal on aircraft subsidies

Stocks in Europe are echoing a mixed performance seen on the stock exchanges during the Asian trading hours. Indices from Germany, United Kingdom, France and the Netherlands gain while stocks from Spain, Italy and Russia pull back. US retail sales data for May is a key macro release of the day (1:30 pm BST) and may boost short-term volatility on FX and equitiy markets alike.

Source: xStation5

DE30 experienced some weakness during yesterday's European trade. However, the index is back on the rise today and is testing the resistance zone marked with the 127.2% exterior retracement of June 7-9 correction (15,790 pts). In case we see a break above this hurdle, the next resistance to watch can be found at 15,880 pts. This zone is marked with 161.8% exterior retracement of the June 7-9 correction as well as May 7-13 correction. Traders should beware that there may be a pick-up in short-term volatility following release of the US retail sales data today (1:30 pm BST). 

Company News

According to a Bloomberg report, European Union and the United States have reached an agreement over illegal subsidies to planemakers. Dispute resulted in tariffs being levied on $11.5 billion of exports. Tariffs may be suspended for 5 years. Negotiators from the EU and US decided that it is better to cooperate when it comes to aircrafts as Chinese state-backed Comac planemaker begins to pose a threat to a duopoly of Boeing and Airbus (AIR.DE).

Siemens Energy (ENR.DE) announced yesterday that it has won a contract with Lyse Elnett, power distribution system operator. Under the terms of an agreement, Siemens Energy will provide services to the power grid in Norway, including construction and upgrades to existing infrastructure. Agreement covers a period of up to 8 years and may be worth as much as €200 million.

Airbus (AIR.DE) is trading higher following news of a potential agreement between European Union and the United States on planemaker subsidies. Stock is trading at fresh post-pandemic highs and tests the resistance zone ranging around the €115 mark. Source: xStation5