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European markets trade higher
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DE30 reaches fresh all-time highs
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Dialog Semiconductor rallies on M&A news
European stock markets are trading higher on Monday following solid gains made during the Asian session. However, a big part of the upward move has been erased already. DAX launched today's cash trading near 14,150 pts handle but has moved below 14,100 pts since. Dialog Semiconductor is making big moves today following M&A news.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 has rallied during the Asian session reaching an all-time high near 14,180 pts. However, gains started to be erased as the European cash opened approached and pullback accelerated following the opening of the session. The index broke below the upward trendline and tested the lower limit of the 1:1 market geometry at 14,050 pts. As bears failed to break below this hurdle, the bull case scenario remains intact for now. However, unless the index manages to recover above the trendline in the 14,100 pts area, traders should stay on guard as sellers may once again attempt to break below the 14,050 pts handle. Breaking below it would pave the way for a bigger pullback with 14,015 and 13,900 pts supports being the first targets.
Company News
Dialog Semiconductor (DLG.DE) is rallying today following M&A news. Japanese Renesas Electronics confirmed that it is in talks with Dialog Semiconductor over potential acquisition. Companies discuss acquisition at the price of €67.50 per share, marking a 21% premium over Friday's closing price. Deal values Dialog Semiconductor at around $6 billion. Renesas will have to disclose its intention to buy the company by March 7, 2021.
Deutsche Bank (DBK.DE) was punished along with Citigroup, ING and ANZ by Taiwanese central bank for helping grain companies to engage in currency speculation. As a result Deutsche Bank has been banned from trading Taiwan dollar deliverable and non-deliverable forwards and has been suspended from trading FX derivatives for 2 years.
RWE (RWE.DE) has won a contract in a major UK offshore auction. RWE was preferred bidder in auctions for 2 wind farm sites with a potential capacity of 3 GW.
Dialog Semiconductor (DLG.DE) opened with a massive bullish price gap today following upbeat M&A news. Stock is trading at an all-time high but slightly below the proposed acquisition price of €67.50. The acquisition price more or less coincides with 161.8% exterior retracement of early-2020 decline and €67.75 area should be seen as a near-term resistance for the stock. Source: xStation5
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