DE30 unimpressed by disastrous German data

• European stocks trade higher after solid Asian session

• DE30 fails to break above the 100-hour moving average

• BMW (BMW.DE) reports 1.4% YoY increase in car sales in November

Stock markets in Europe are trading higher on the final trading day of the week. Scale of gains is similar to the ones observed during the Asian session. UK and Dutch equities are outperforming while Polish WIG20 (W20) is the only major European index to trade lower. The German index also moves higher as it looks past disastrous industrial production reading released this morning.

Source: xStation5

DE30 failed to break above the lower limit of the recently broken consolidation range at 13150 pts. It seems that the index has found a new trading range in between 13050 pts and 13150 pts. Having said that, limits of a new range are key levels to watch. Apart from that, traders should notice that the index has struggled to deliver a more significant break above the 100-hour moving average recently (red line). This average runs in the 13120 pts area now and can be considered a near-term resistance to watch.

DAX members at 9:36 am GMT. Source: Bloomberg

BMW (BMW.DE) reported car sales of 225.6k in November, marking a 1.4% YoY increase. The biggest increase was spotted in electrified vehicles (category consisting of EVs and hybrids) as sales in this segment grew to 17.48k units (18.4% YoY). On the other hand, MINI was the worst performing segment as its sales registered a 6.8% YoY decline.

Analysts’ actions

• Fresenius Medical (FME.DE) cut to “underweight” from “equal-weight” at Morgan Stanley. Price target set at €61

• Deutsche Lufthansa (LHA.DE) upgraded to “outperform” from “neutral” at MainFirst. Price target set at €19

• Siemens Healthineers (SHL.DE) cut to “underweight” from “equal-weight” at Morgan Stanley with a price target of €39. The company was also cut to “hold” at Commerzbank with a price target of €45

Fresenius Medical (FME.DE) managed to break above downward trendline at the turn of October and November. Following a 20% surge, price action eased near the 200-session moving average (purple line). The stock has been swinging around this moving average for almost a month and is now testing the support zone ranging above the €65 handle. Source: xStation5