DE30: Deutsche Bank surges as US asset manager buys stake

• European shares gain on China’s plans to reduce tariffs

• DE30 pulls back towards support after morning bounce

• Allianz (ALV.DE) in talks to stop publishing quarterly report

News of China mulling halving tariffs on some US goods spurred another wave of optimism on global equity markets. European markets extend gains following surge in Asian shares overnight. Gains can be spotted all across the Old Continent with Austrian and Belgian equities being leaders. Polish WIG20 is an exception among major indices as it trades slightly below flat line.

Phil Hogan goes to Washington once again

Phil Hogan, the European Commissioner for Trade, will visit Washington today. This will be the second visit of the EU's trade chief in the US capital in less than a month. A meeting with the US Trade Representative is scheduled. The two are likely to discuss EU-US trade and recent tariff threats. Apart from that, some discussions over the visit of the EC President Ursula von der Leyen in Washington may be held. Von der Leyen agreed to meet Donald Trump in Washington when she was at Davos earlier this year.

Source: xStation5

DE30 continues to rally today. The German index tested the 13600 pts handle in today’s early trading but failed to hold onto the gains. Currently we can observe the index pull back towards the support zone at 13540 pts. A point to note is that in the same area one can find the lower limit of the local Overbalance structure. Having said that, a break below this hurdle could herald a deeper correction move. The first major support in such a scenario can be found at 13375 pts. Should the index rebound, another test of the 13600 pts mark looks likely. Should this level be clear, the way towards ATH will be left open.

DAX members at 9:25 am GMT. Source: Bloomberg

Infineon (IFX.DE), Continental (CON.DE) and German carmakers gain on today’s risk mood improvement. China is reportedly mulling havling tariffs on $75 billion of US goods.

Deutsche Bank (DBK.DE) can be found among DAX leaders today after the US Capital Group disclosed significant stake at the company. Los Angeles-based investment manager disclosed that it holds 3.1% stake in Deutsche Bank in a sign of approval to Bank’s turnaround price. Stake is worth over €500 million.

Allianz (ALV.DE) is reportedly in talks with Deutsche Boerse over the possibility of not publishing quarterly reports. The German insurer wants to stick to half- and full-year reports only. The decision is said to be connected to transition to new accounting standards. Deutsche Boerse requires companies to publish quarterly reports and failure to do so risk removal from Boerse’s indices.

Airbus (AIR.DE) will monitor the situation of its suppliers that also supply parts to Boeing. The European planemaker is concerned about an impact of 737 MAX grounding on its own supply chain.

Allianz (ALV.DE) rallies along with the broad market. Following a break from the consolidation range, the stock surged above the resistance marked by 2019 high and 127.2% exterior retracement level of correction move started in mid-2019. The next hurdle in line can be found at 161.8% exterior retracement (€234.50 area). Source: xStation5