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Equities rally on Biden win
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DAX jumps above the 12,500 pts resistance zone
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Strong performance of cyclical companies
European markets opened higher on Monday after major US news agencies said that Joe Biden won the US presidency. However, momentum slowed after the start of the cash session and indices gave back part of the gains. Nevertheless, they still trade higher compared to Friday's close, thanks to solid performance of cyclical stocks.
DE30 got boosted by calls that Biden won the White House. German index opened above the 12,500 pts support today and moved higher to test 12,750 pts handle near the 78.6% retracement of a recent downward move. However, traders should be cautious as post-election boost may be waning and markets refocus on the pandemic reality. So far, the aforementioned 12,750 pts area has not been broken and it serves as the first major resistance to watch. Source: xStation5
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A big part of market uncertainty was taken away after major US media declared Biden won the US presidential elections. While Donald Trump plans to launch a legal battle against the result, markets do not seem to give him a big chance of succeeding. Broad risk-on rally can be spotted on the stock markets on Friday and cyclical stocks like carmakers and industrials can be found among top gainers.
Infineon Technologies (IFX.DE) reported Q3 results today ahead of the session open. German semiconductor company generated €2.49 billion in revenue, up 21% YoY. Segment profit at €379 million was 22% year-over-year higher. However, company reported net profit of €109 million that was 32% YoY lower. EPS came in at €0.08, down from €013 in Q3 2019. Company proposed €0.22 dividend for fiscal-2020 (Q4 2019 - Q3 2020), down from €0.27 previously. Infineon expects revenue to grow 23% in the fiscal-2021 (Q4 2020 - Q3 2021).
Airbus (AIR.DE) delivered 72 jets in October. This marks the best month of 2020 as deliveries were just slightly lower than 77 airplanes delivered in October 2019. Company said that it had also sold 11 jets in the previous month.
Airbus (AIR.DE) bounced off the lower limit of the trading range at €61.50 and broke above the upper limit at €68. However, upward move was halted at the resistance zone ranging below €74, where 200-session moving average can be found as well (purple line). If the stock manages to break above it, it would mark the first since February 21 when Airbus trades above this long-term average. Source: xStation5
