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European markets trade slightly higher
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DE30 bounces off the upward trendline
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BMW to use more recycled materials in its cars
Stocks in Europe are trading higher on Thursday in an attempt to recover from yesterday's pullback. Scale of gains is minor however and most of the major indices from the Old Continent trade 0.2-0.3% higher. Today's economic calendar lacks major data releases therefore the session ahead may be a calm one. A pack of second-tier data releases from the United States in the afternoon should not have a major impact on equities.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appMoods during the Asian session hinted at a lower opening of today's cash session for German DAX (DE30). However, a run-up that occurred shortly before the launch of cash trading led to a flat opening. DE30 caught a bid after the opening of the European session and moved above 15,850 pts. Note that the recovery was launched from the area marked with the upward trendline and 23.6% retracement of the recent upward. Having said that, the rebound looks to have solid technical background and a move towards recent record highs cannot be ruled out. Key resistance to watch for now is the 15,970 pts area that has halted upward move twice this week.
Company News
Deutsche Bank (DBK.DE) has again received permission to sponsor IPOs in Hong Kong. License to handle IPOs in Hong Kong was lost after the company failed to meet regulator's staffing requirements for such actions. Deutsche Bank hired additional employees in order to tackle the issue.
BMW (BMW.DE) said that it plans to use more recycled materials in its cars. Carmaker is currently using around 30% of such materials in its cars but aims to boost this level to 50%. Moreover, BMW also said that emission levels of its vehicles will halve by 2030 compared to 2019 levels, in-line with European Commision proposal.
According to Les Echos report, Airbus (AIR.DE) received an order for 2 military transporters from Kazakhstan. Planes are expected to be delivered in 2024.
Analysts' actions
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Henkel (HEN3.DE) downgraded to "neutral" at JPMorgan. Price target set at €90
BMW (BMW.DE) dropped below the 200-session moving average in the middle of August. Stock attempted to break back above this technical level this week but the attempt failed. Note that the 200-session moving average was often a turning point for the index (orange circles) and failure to break back above may hint that drop is set to continue. Recent local low at €76.00 is the near-term support to watch. Source: xStation5
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