DE30 pulls back from daily highs

• European markets trade higher

• DE30 pulls back 100 points from daily highs

• Airbus with massive order from Chinese airlines

European stock markets indices launched new week's trading higher. However, majority of European blue chips indices have already moved off daily highs and trimmed part of the gains. German DAX is trading just 0.1% higher at press time - around 100 points below daily high. Polish WIG20 (W20) is one of top laggards with a 0.8% drop

German trade data for May was released this morning at 7:00 am BST. While German trade data rarely catches an attention of market participants, a report released today is certainly noteworthy. Exports were 0.5% MoM lower (exp. +0.9% MoM) while imports were 2.7% MoM higher (exp. 0.9% MoM). This is led to Germany reporting its first monthly trade balance deficit since 1991. This is a result of big increase in prices of imported products, especially energy. As Germany is a big, export-driven economy, a trade deficit can be seen as a warning sign.

German economy reported a first monthly trade deficit since 1991! Source: Bloomberg

DE30 managed to defend a mid-term upward trendline that was tested at the end of previous week (orange circle). However, buyers failed to launch a recovery move afterwards and DE30 continues to trade just slightly above the aforementioned trendline. As such, another attempt at breaking below the trendline in the 12,700 pts area cannot be ruled out. If sellers manage to retake control and deliver a break below, the next support zone can be found ranging around 78.6% retracement (12,400 pts area). On the other hand, if bulls managed to launch a recovery move, the first target to watch fill be a resistance zone near 61.8% retracement in the 13,200 pts area.

Source: xStation5

Airbus (AIR.DE) secured a massive order from four Chinese airlines. China Southern Airlines, Air China, China Eastern Airlines and Shenzhen Airlines ordered a total of 292 single-aisle A320 aircraft from Airbus. A move highlights strained US-China relations as well as concerns over crashes of Boeing jets in recent years. Financial details were not disclosed but a price of a single jet is likely to be lower than the listed $101 million price tag as purchase is made in bulk.

Dirk Hilgenberg, chief of Cariad owned by Volkswagen (VOW1.DE), said that Cariad will be streamlined in order to boost efficiency and step up software development. Cariad is at the center of Volkswagen's strategy to catch up with Tesla in the EV business.

Airbus (AIR.DE) launched today's trading higher but has almost completely erased all of today's gains already. Nevertheless, technical landscape looks rather bullish - buyers managed to defend the support zone marked with 38.2% retracement of the post-pandemic recovery move and the way towards resistance zone ranging above €102 is left open. Source: xStation5