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European indices erase early gains
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DE30 tests 15,600 pts support
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BMW to start X5 production in China
European indices gave up early gains. Most blue chip indices from the Old Continent trade little changed on the day. Spanish IBEX (SPA35) stands out as it gains 0.6%. Polish WIG20 (W20) is the top underperformer, dropping 0.5% at press time. Markets are somewhat nervous ahead of the final 2021 FOMC decision tomorrow at 7:00 pm GMT. Economic calendar for today lacks any major data releases.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 was moving sideways during the Asian session, following yesterday's sell-off. While it looked like a recovery move may be launched at the beginning of the European session, moods started to deteriorate and DE30 dived back to 15,600 pts. This level is a strong short-term support as it is marked with 50% retracement of the late-November correction. In case bulls manage to take back control and launch and upward correction, key resistance zone to watch can be found between 38.261.8% retracement and 15,800 pts handle. In case declines resume and index gets pushed below 15,600 pts, attention will shift to key support marked with 38.2% retracement and the lower limit of the Overbalance structure (15,420 pts).
Company News
BMW (BMW.DE) said that it plans to start production of X5 SUVs in China in order to meet increased worldwide demand. Production in China is expected to begin in Q2 2022.
Zalando (ZAL.DE) announced that it will set up two new logistics centres in Poland. The first one is expected to become operational in March 2022 while the second one is expected to commence operations in Q2 2023. Over 4,000 new jobs will be created.
Volkswagen (VOW1.DE) said that it is looking for locations for new battery cell plants in Spain as well as Eastern Europe. Locations for the company's third and fourth large battery plants are expected to be chosen in the first half of 2022.
Analysts' actions
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MTU Aero (MTX.DE) upgraded to "buy" at UBS. Price target set at €215
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MTU Aero (MTX.DE) upgraded to "buy" at JPMorgan. Price target set at €220
Shares of MTU Aero (MTX.DE) launched today's trading higher following a double upgrade from UBS and JPMorgan. However, gains were erased after market moods started to deteriorate. Stock is now trading slightly lower on the day. Key levels to watch in near term are resistance, marked with 38.2% retracement of post pandemic recovery move, and support at 50% retracement. Source: xStation5
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