European stock markets are slightly lower or unchanged today as investors seem to prepare themselves ahead of the so-called Super Thursday when the UK elections as well as the ECB’s meeting take place.
The DAX (DE30 on x Station5) falls 0.18%, the Eurostoxx50 (EU50) gains 0.1% and the French CAC40 (FRA40) is up by 0.12% in the morning trading. To be honest, there is no incentive to be more bullish as the NIKKEI (JAP225) was flat today and the SP500 (US500) futures point to a lower opening, though there are a few hours left to get it above the zero line. The main focus was on Australia where the GDP release was unveiled. The reading has shored up the Aussie immediately. Nevertheless, the Australian S&P/ASX 200 was unchanged today snubbing GDP figures.
DAX opens slightly lower amid marginal upbeat moods. Investors in Europe brace themselves for the EBC’s meeting and the UK elections as well. Source: Bloomberg
The breakdown of DAX’s performance shows that utilities are the strongest,gaining 3.06%. Besides, there are four sectors on the ’green side’ – real estate, financials, consumer staples and telecommunication services.
Utilities sector is the strongest one as four others are above the unchanged level. However, there is no a drama regarding falling sectors as declines are not so immense. Source: Bloomberg
Let’s move to the biggest movers right now. The best performing stocks in the morning trading are RWE (RWE.DE) and EON (EOAN.DE) both climb as the country’s top court issued the ruling that a nuclear-fuel tax is illegal. It was a long-awaited verdict closely watched by investors and analysts. Let us recall that the tax was imposed between 2011 and 2016. The Constitutional Court said the tax was “formally illegal and void”.
These two companies make the whole utilities sector the largest winner on Wednesday’s session. It’s a second victory by Germany’s utilities in this aspect. In December the court ruled that a decision to shut down all nuclear plant following Japan’s Fukushima disaster violated some of their property rights. It needs to know, EON paid EU2.8b of nuclear-fuel tax between 2011-2016, RWE EU1.7b. These amounts equal to 15.5% of RWE’s undisturbed market value on June 2, 13.3% for EON.
The German DAX broke out of a consolidation last Friday therefore, its two-week sideway price action has come to an end. Proximity of three demand zones on top of each other, could create some excellent trading opportunities.
The German DAX broke out of a consolidation last Friday therefore, its two-week sideways price action has come to an end. Tomorrow could be the most interesting trading day so far this year (ECB meeting, UK elections) with proximity of three demand zones on top of each other. First one is located between 12628 and 12576 area. The area between 12572-12502 is worth looking at as well. The strongest zone on the chart, could create some excellent trading opportunities is located between 12499 and 12429. A breakout of this zone could result in a strong downward move even below 12300.