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European stocks trade lower
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DE30 tested 200-hour moving average
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Commerzbank to exit equities trading business
European stock markets are trading lower on the final trading session of the week following a lacklustre Asian session. German, Spanish and Italian equities trade lower while stocks in the UK and France trade more or less flat. Dutch shares are outperformers with AEX index gaining 0.9% today. There are no key macro reports scheduled for release today.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 has dropped below the price zone ranging between 13,950 pts and 23.6% retracement. Decline has been halted at the 200-hour moving average (purple line) and now the index tries to climb back above the aforementioned 13,950 pts handle. A point to note is that DE30 failed to paint a lower low therefore a change in the short-term may be looming. However, in order to talk about a reversal, the index would have to not only break back above the 13,950 pts but also above the short-term downward trendline (14,025 pts area currently). On the other hand, in case the index resumes downward move and breaks below the 200-hour moving average, first support levels to watch can be found at 13,890 and 13,845 pts.
Company News
Volkswagen (VOW1.DE) said its global deliveries dropped 1.4% in January, to 824.8 thousand vehicles. Deliveries in the Western Europe declined 28% during the first month of 2021. Meanwhile, deliveries in China increased 22% in January.
Manfred Knof, CEO of Commerzbank (CBK.DE), announced that his bank will exit the equities trading business. Move is part of a turnaround strategy aimed at reducing costs at Commerzbank. Bank will also reduce the offering of its investment banking unit and provide M&A advice only to clients with "corresponding needs".
Supervisory and Executive Boards of Aurubis (NDA.DE) recommended paying out a dividend of €1.30 per share, €0.05 higher than in the previous year. Company also maintained its forecast for 2021. Aurubis continues to expect EBIT increasing from €221 million in 2020 to €270-330 million in 2021. Return on Capital Employed is expected at 9-12%.
Share price of Commerzbank (CBK.DE) dropped yesterday when the bank announced its turnaround strategy. Decline was halted by the support zone ranging between 50% retracement of recent upward impulse and the €5.00 mark. In case the stock recovers from here, bull case scenario will remain intact. On the other hand, break below €5.00 could pave the way for a test of the 200-session moving average (purple line) and the lower limit of the Overbalance strategy at around €4.65. Source:xStation5
