• European indices trade higher across the board
  • Deutsche Lufthansa is the best performing stock, up by 1.66 percent

The European stock markets have started the first trading day this week with decent gains as Asian session has set the tone.

Indices in Asian ended the day with gains, these were not been significant though. The Japanese NIKKEI (JAP225 on xStation5) gained 0.1 percent, the Chinese Shanghai Composite (CHNComp) rose 0.87 percent, the Hang Seng (HKComp) in Hong Kong went up 0.97%, while the Australian S&P/ASX200 added 0.08%.

In Europe, all major bourses are flashing green in early Monday trading. The German DAX (DE30) is trading 0.56 percent higher, the French CAC40 (FRA35) is up by 0.82 percent and the Eurostoxx50 (EU50) inches higher by 0.70 percent, while the FTSE100 (UK100) is trading higher by 0.52 percent.

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 The German DAX is trading higher as almost all stocks are in the positive territory. Deutsche Lufthansa is the most gaining stock today, trading higher up by 1.66 percent. Source: Bloomberg

When it comes to the largest movers at today’s session there are especially banks after the news from Italy as it began winding up two failed regional banks on Sunday in a deal that could cost the state up to 17 billion euros ($19 billion) and will leave the lenders’ good assets in the hands of the nation’s biggest retail bank, according to Intensa Sanpaolo, the Italian banking group.

Moreover, Commerzbank has been backed by the news revealed late Friday that it won’t plan a loss for full-year 2017 despite a possible loss in Q2. In turn, with regard to Deutsche Bank, Borislav Ivanov was named chairman of the board, the company said in statement. 

Moving on, Lufthansa is gaining in the early trading following the news provided by CEO Carsten Spohr as it rules out a takeover of Air Berlin at the moment and the firm is willing to deepen its cooperation with the rival German carrier. Lufthansa supports Air Berlin leasing 38 aircraft and operating them on Lufthansa’s routes. Spohr says that expanding the cooperation and leasing other Air Berlin aircraft with crew cannot be excluded.

On the other hand, we have RWE which stock is declining possibly on the back of Friday’s proposal as the company proposed special dividend of 1 EUR per share for FY 2017. This special payment is related to the reimbursement of the nuclear fuel tax. The amount put forward by RWE topped market’s expectations as they had predicted at most 0.5 EUR per share. Investors seem to be worry about usage of extra money in spite of reassurance coming from the company as it claimed that tax refund will not affect the firm’s operating earnings forecast.

Looking at the chart, the German DAX tiresomely climbs higher as represented by long wicks to the downside circled in red. Today’s session proved that bulls are still in a good shape willing to break above a recent local resistance zone located between 12785 and 12817. The index opened with a gap which is now a local demand zone and that set up favours buyers. Positive Asian session and recent price action gives a great opportunity to break from the almost a week-long consolidation. However, an impulse is very much needed to do so as the price currently sits within a proven resistance area. The break to the upside, which is the most probable outcome, could result with testing recent highs at 12947. The area between 12727 and 12745 is now a local demand zone and next area to watch is between 12619 and 12659.

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The German DAX opened with a gap to the upside which cold provide an excellent opportunity to leave from almost a week-long consolidation. Currently price sits within a proven resistance area a an impulse is very much needed to continue with the major trend to the upside. Source: xStation5