DE30 tests key short-term resistance again

• European stock markets trade higher

• DE30 tests upper limit of market geometry again

• Siemens agrees to acquire US software firm for $1.6 billion

European stock markets are trading higher for the second day in a row. Blue chips indices from Western Europe gain over 1%. Polish WIG20 (W20) is one of the outperformers with 1.6% gain at press time. Russian blue chips indices are the only ones to trade lower. Economic calendar for today lacks any major releases from Europe.

DE30 is once again attempting to make a break above the upper limit of the Overbalance structure in the 13,290 pts area. An attempt made yesterday during the European morning trade was a failed one and the index pulled back. However, a pullback was short-lived and it looks like bulls are not giving up. A break above the Overbalance structure would in theory signal a trend reversal. Source: xStation5

Siemens (SIE.DE) agreed to acquire Brightly Software, US software-as-a-service provider, for $1.58 billion. Siemens said that it plans to leverage Brightly's position in the US market via synergies with its other businesses. Company said that the value of these synergies is expected in the "mid-triple digit range". Deal is expected to close this year after getting regulatory approvals.

Siemens Healthineers (SHL.DE) announced that it will buy back its own shares with a value of up to €250 million. Buybacks will begin on June 29, 2022 and end on January 20, 2023.

According to the Bloomberg report, Airbus (AIR.DE) emerged as a front-runner to win a contract for 50 jets from Jet Airways. Value of the deal is around $5.5 billion. However, no final decision was announced yet.

Analysts' actions

• Hugo Boss (BOSS.DE) upgraded to "buy" at Jefferies. Price target set at €58.00

• Henkel (HEN3.DE) downgraded to "sell" at Morgan Stanley. Price target set at €56.00

Bears once again failed to deliver a decisive break below the 38.2% retracement of post-pandemic upward move on Airbus (AIR.DE). Recover is supported by news of a potential big order for the company. The first near-term resistance can be found at psychological €100 level, slightly below a mid-term resistance ranging around 23.6% retracement. Source: xStation5