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European markets rally on Tuesday
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DE30 swings near 13,400 pts handle
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Munich Re expects to double profit in 2021
Stock market indices in Europe are trading higher echoing a solid performance of Asian equities. Blue-chips indices from Germany, France, Spain and the Netherlands trade around 1% higher. UK FTSE 100 outperforms and gains almost 2%. On the other hand, stocks from Portugal and Switzerland lag near yesterday's closing prices.
Source: xStation5
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Open real account TRY DEMO Download mobile app Download mobile appDE30 almost fully recovered from yesterday's decline during today's Asian session. Index experienced some range trading around the 13,400 pts handle during the European morning trade but managed to hold onto overnight gains. DE30 trades 0.4% below post-pandemic high in the 13,460 pts area. It should act as a near-term target for buyers. When it comes to support levels to watch, near-term support can be found at the 13,360 pts swing level while the next one can be found at 13,250 pts handle, the lower limit of the Overbalance structure.
DAX member at 10:25 am GMT. Source: Bloomberg
Company News
According to an AFR report, Allianz (ALV.DE) has reached a deal with Westpac to acquire the latter's general insurance business. Acquisition may value the business unit at over A$500 million. Report claims that the deal may be signed as early as today.
Munich Re (MUV2.DE) expects full-2020 profit to come in at €1.2 billion in spite of all pandemic-related costs and losses. Moreover, the German reinsurance company sees 2021 profit more than doubling to €2.8 billion. Company expects the coronavirus pandemic to have significantly smaller negative impact on operations in 2021.
Bayer (BAYN.DE) announced that it has sold the majority of its stake in Elanco Animal Health, a company that produces medicines for pets. Bayer sold 54.5 million Elanco shares for $30.25 each and gave deal underwriters an option to purchase additional 8.175 million shares at the same price. Bayer plans to sell the remaining part of the business at some point as well.
Daimler (DAI.DE) plans to give a one-off pandemic bonus of up to €1,000 to its employees in Germany. Over 160,000 employees working on contracts will be eligible for a bonus.
Munich Re (MUV2.DE) began to trade in the €235-243 range following strong gains triggered by upbeat coronavirus vaccine news at the beginning of November. Stock made a jump today on the back of an updated profit forecast but has managed to trim part of the gains already. Source: xStation5
