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Stocks in Europe trade higher
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DE30 tests resistance in 15,700 pts area
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Daimler and BMW to keep luxury car sales limited
Stocks in Europe are trading slightly higher at the beginning of a new week. European equities perform well even in spite of a lacklustre Asian session that saw most benchmarks from the region pull back. Gains of 0.4-0.6% can be spotted on blue chips indices from all across the Old Continent. Swedish stocks are lagging behind.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 launched a new week in upbeat moods. While the index traded little changed during the Asian session, bulls became more active during the European morning hours. Index managed to bounce off the area marked with the 23.6% retracement of last week's drop and rallied towards the 50% retracement in the 15,705 pts area. However, buyers have not managed to deliver a more meaningful break above this hurdle yet. Upper wicks of the most recent candlesticks on the H1 interval even suggest that the reversal may be looming. 38.2% retracement at around 15,645 pts may offer some short-term support but a more important demand zone can be found at the aforementioned 23.6% retracement that serves as a lower limit of trading range.
Company News
Daimler (DAI.DE) and BMW (BMW.DE) plan to continue with limited sales of premium vehicles even once the semiconductor crisis is resolved. German carmakers have lowered unit sales of its premium brands in response to lack of available chips on the market. However, measures may be left in place even once chip supply catches up with the demand as an attempt of keep prices of luxury vehicles high.
Herbert Diess, CEO of Volkswagen (VOW1.DE), said in an interview with Der Spiegel that his company is open to forming partnerships aimed at developing software together. Up to this point, Volkswagen has been developing software on its own in hopes that it will soon be able to compete with Tesla or Alphabet when it comes to autonomous driving technology.
Porsche (PAH3.DE) and Siemens Energy (ENR.DE) teamed up in order to develop a pilot plant in Chile that will produce a CO2-neutral fuel. Plant is expected to become operational in mid-2022 and produce 130 thousand litres of synthetic ethanol that year. Capacity is expected to be expanded to 55 million litres by 2024 and 500 million litres by 2026. Fuel type that will be developed at the facility is said to reduce CO2 emissions of cars by up to 90%.
BMW (BMW.DE) is trading higher today. Stock managed to break above the short-term downward trendline at the start of the session. However, continuation of the recovery move was put under question after stock made a failed attempt of breaking above the 200-session moving average (purple line) and the €81.35 resistance zone. Source: xStation5
