DE30 upholds recent trading range

• European markets trade lower on Wednesday

• DE30 once again bounces off the 14,600 pts support

• Mercedes Benz to suspend production in Brazil

European stock markets are trading lower on Wednesday, following a weak session on Wall Street yesterday and lacklustre trading in Asia today. Dutch shares are European outperforms with the AEX index (NED25) gaining 0.7%. On the other hand, Polish equities are top laggards with WIG20 index (W20) dropping 1%. According to a Bloomberg report, Germany is set to drop plans for a 5-day Easter lockdown but news did not trigger any major moves on the markets.

Source: xStation5

DE30 has once again dipped below the 14,600 pts support zone and has once again managed to recover back above it (orange circles). A point to note is how well that support zone has been halting downward moves recently. An upward move towards the upper limit of a recent trading range at 14,670 pts looks to be the base case scenario for now. In case bulls manage to reach and break above this hurdle, a downward sloping trendline will be the next resistance to watch and it can be found slightly above the aforementioned 14,670 pts handle. On the other hand, should we see a resumption of a downward move, the 14,600 pts area will be on watch. Traders should keep on guard in case DE30 breaks below this area as the index has often seen short-term reversal in the 14,530-14,590 pts area.

Company News

Mercedes Benz, subsidiary of Daimler (DAI.DE), announced that it will suspend production of trucks in Brazil from March 26 until April 5. The decision comes as the pandemic situation in Brazil continues to worsen. Shortages on the semiconductor market are also mentioned as one of the reasons.

TUI (TUI.DE) announced that it will close an additional 48 retail stores across the United Kingdom as the coronavirus crisis continues to put the travel sector under pressure. TUI had closed 166 shops earlier. New closures will impact over 270 staff members. Following closures of 48 stores, the company will have around 310 stores left in the United Kingdom and Ireland.

Aurelius Equity Opportunities (AR4.DE) will propose paying out a €1 dividend per share from 2020 profit. Company plans to raise the 2021 dividend to €1.25, followed by an increase to €1.50 in 2022. Decision on whether to pay out a dividend or not will be made during the annual general meeting on May 18, 2021.

Aurelius Equity Opportunities (AR4.DE) is trading lower today. Company continues pullback launched after a failed attempt of breaking above the 61.8% retracement of the early-2020 drop at €28.70. Near-term support level to watch can be found at €25.25 and is marked with the 50% retracement. Key near-term support can be found at €23.50 and is marked with the lower limit of local market geometry. Source: xStation5