DE30 tried to break above 13,000 pts but failed

• European indices recover from morning drop

• DE30 tries to break above 13,000 pts but fails

• Nordex and Verbio rally as EU mulls cut energy ties with Russia

European stock market indices launched today's trading lower but managed to recover losses in the first hours of the cash trading session. German DAX is trading around 0.5% higher on the day while French CAC40 gains 1%. Blue chips indices from Italy and Spain gain over 2%. Turmoil on the energy market eased somewhat but prices remain elevated.

Source: xStation5

DE30 made a retest of the support zone ranging below the 78.6% retracement of the upward move launched in November 2020 (12,400 pts). However, just as it was the case yesterday, bears failed to push the price lower and the index started to regain ground. DE30 briefly recovered above the 13,000 pts mark before bulls surrendered. A feeling of indecisiveness can be spotted on the markets. On one hand, war in Ukraine continues and there is no end in sight. On the other hand, markets are no longer as emotional and began to adapt. Major level to watch for DE30 are the aforementioned support in the 12,400 pts area and a resistance zone ranging above 13,150 pts area.

Company News

Discussions in the Western countries are ongoing whether to ban imports of Russian energy commodities or not. The United States is reportedly inching towards such a move while opposition of German officials looks to be softening. Russia warned that imposing energy sanctions may encourage it to cut natural gas supply to Europe completely. The European Union is set to unveil a plan this week to cut dependence on Russian gas by over 60% within 12 months. While details remain unknown yet, German wind turbine manufacturer Nordex (NDX1.DE) and biofuel supplier Verbio (VBK.DE) rally today.

Adidas (ADS.DE) announced the decision to replace the chief of its Chinese unit. Decision comes after the previous executive failed to limit damage from a brand boycott. In other news, it was reported that Adidas also took the decision to halt all of its operations in Russia and close stores in the country.

Boeing announced yesterday that it will stop purchasing titanium from Russia. While its European rival, Airbus (AIR.DE), did not announce such a move yet, it cannot be ruled out that it will follow its US peer. Social pressure on companies doing business with Russia is massive in the West. For example, Shell announced today that it will halt all purchases of Russian oil and natural gas following public backlash over its recent purchase of Russian crude.

Nordex (NDX1.DE) is rallying today as the idea of making Europe independent from Russian gas is getting attention. Shares of wind turbine maker surged following the launch of Russian invasion of Ukraine and upward move is being continued this week following a break above the upper limit of a local market geometry. Source: xStation5