DE30 tests mid-point of trading range

• European markets trade higher

• DE30 tests swing level at 13,235 pts

• Deutsche Bank mulls spreading out New York workforce

European markets started a new week higher, following gains made during today's Asian session as investors look past coronavirus developments in Europe's largest economy. German Chancellor Angela Merkel announced on Sunday that the country will move into tougher lockdown starting from Wednesday. Schools and non-essential shops will be closed until January 10. The decision comes after the previous "soft" lockdown failed to limit spread of the virus.

Source: xStation5

DE30 is trading higher today, ignoring tougher coronavirus restrictions imposed in Germany. The index is testing swing level and a mid-point of the recent trade range at 13,235 pts. DE30 tested the lower limit of the range at 13,000 pts on Friday but bulls managed to recover and push the price higher. Should we see a break above the aforementioned 13,235 pts area, the test of the upper limit of the range at around 13,450 pts could be the next move. However, traders should remember about risks associated with a no-deal exit that still do not seem to be priced in. Negotiators decided to extend talks beyond yesterday's deadline but as key issues remained unresolved for months, a last-minute deal is looking increasingly unlikely. Negative Brexit headlines were one of the main drivers of Friday's sell-off.

Company News

Deutsche Bank (DBK.DE) is considering spreading out its staff from the New York office. In an interview with the Financial Times, Christiana Riley, the Deutsche Bank's head of US operations, said that over the next 5 years as much as half of 4,600 New York office workers may be spread out to smaller hubs in the low-cost areas across the country.

Daimler (DAI.DE) plans to begin a serial production of full-electric compact SUVs in Hungary in the final quarter of 2021.

Share price of the Deutsche Bank (DBK.DE) slumped below the support at 78.6% retracement of the February-March decline on Friday. Stock is trading higher today but finds it hard to move back above the aforementioned zone. Should we see a return to the downward move, traders should watch the next support at 61.8% retracement (€8.20 area). Source: xStation5