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DE30 attempts to break above the resistance zone ranging above 12420 pts handle
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E.ON (EOAN.DE) increase stake in Innogy to 90%
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Deutsche Bank (DBK.DE) auctioned equity derivatives book
In spite of a mixed opening, European equities are trading higher at the top of the first hour of the session. Spanish (SPA35) and Italian (ITA40) indices can be found among leaders while Polish stock market index (W20) is one of a few underperformers. Banks are the best performing sector while miners take the biggest step back.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appThe 33-period exponential moving average (green line, H4 interval) keeps supporting DE30. The index dipped below the moving average today but once again failed to sustain the downward move. A quick reversal occurred later on and the price is testing the resistance zone ranging above the 12420 pts handle. A break above this zone would bring the index to the next important resistance - upper limit of the Overbalance structure that can be found slightly below the 12495 pts handle. The aforementioned moving average remains the near-term support to watch (currently at 12370 pts).
DAX members at 8:48 pm BST. Source: Bloomberg
Deutsche Boerse (DB1.DE) can be found among DAX biggest laggards today following a downgrade the company has received at Berenberg. The German investment bank lowered recommendation for the stock from “hold” to “cut”. Price target was set at €132. The firm said that declining US interest rates and low rates in euro area make investors more cautious about the long-term outlook and, in turn, may cause them to refrain from investing.
E.ON (EOAN.DE) closed the purchase of 76.8% Innogy stake from another German utility company RWE (RWE.DE). Following the transaction E.ON owns 90% of Innogy shares. Innogy is the German electricity company that invests, for example, in electric mobility.
Deutsche Bank (DBK.DE) announced that it has auctioned its flow equity derivatives book. The portfolio was split into US, European and Asian sub-portfolios and sold to three separate entities. According to German lender’s spokesman, the bank plans to auction interest-rate derivatives book now. This is another part of Christian Sewing’s plan to downsize investment bank unit in a bid to slash costs.
Siemens Healthineers (SHL.DE) is the worst performing stock in MDAX index on Thursday morning. Share price declines after JPMorgan decided to downgrade the company. Recommendation was lowered from “neutral” to “underweight”. Price target was lowered from €34.90 to €32.30.
E.ON (EOAN.DE) traded mostly sideways for the past two years. The stock managed to bounce off the resistance zone ranging above the €8.10 handle and marking the lower limit of the trading range. Share price is testing the €9.00 handle at press time and in case it manages to break above it, an upward move towards the €9.20 handle may be on the cards. Source: xStation5
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