DE30: Solid manufacturing PMIs support European indices

• European markets trade higher after German PMIs

• DE30 climbs above 12,600 pts

• Daimler expects full-year EBIT at previous year's level

European stock markets are trading higher on Friday following strong reading of German manufacturing PMI. However, the situation in the services sector in October has deteriorated compared to the previous month in both Germany and France. Final US presidential debate that took place overnight had a small impact on the markets.

DE30 continues rebound from yesterday's low near 12,350 pts. German index caught a bid today in the morning after the PMI data release. Upward move has been halted near the 33EMA so far (green line, H4 interval). However, gains can extend towards 12,770 pts, where the upper limit of the Overbalance structure can be found (yellow box). Breaking above this hurdle could hint at a bigger upward move being underway. Source: xStation5

Company News

Daimler (DAI.DE) reported full Q3 earnings today. Revenue at €40.3 billion was 6.9% YoY lower and also missed the median estimate of €40.7 billion. On the other hand, Q3 EBIT at €3.07 billion was 14% YoY higher and came above estimate of €2.89 billion. Company expects unit sales and revenue to be significantly lower in full-2020 than in 2019. However, thanks to a strong sales rebound in China, Daimler expects full-year EBIT to be near previous year's level.

The US Federal Trade Commission approved the acquisition of Varian Medical Systems by Siemens Healthineers (SHL.DE). Two companies still need approvals from other countries. Deal is expected to close in the first half of 2021.

Airbus (AIR.DE) has asked suppliers to prepare to supply parts for a monthly production rate of 47 A320neo airplanes in the second half of 2021. European planemaker plan to maintain a monthly production rate at 40 in the first half of 2021 before boosting it in the later part of the year.

DAX members at 10:31 am BST. Source: Bloomberg