• European equity markets have begun the week higher in the aftermath of the falling euro
  • DAX (DE30 on xStation5) eyes its all-time high, while IBEX (SPA35) bounces back sharply
  • Deutsche Bank (DBK.DE) agrees to pay a fine to settle US ligation 

Equity markets across the old continent have kicked off the day higher on the back of the weaker euro ex-change rate which acts in favor of companies’ profitability. Moreover, the Spanish index has opened sharply lower following the independence referendum, most of declines have been quite quickly erased though. Let’s take a look at the two charts below.

link do file download linkThe DE30 has begun trading higher being shored up by the euro’s jump. Source: xStation5

The German main index has already broken its resistance/support zone placed at around 12820 points. If that move is sustained, a move toward an all-time high may be on the cards in the nearest future. If so, a potential corrective move could be a buying opportunity unless the pair breaks 12820 points to the downside. Anyway, an overall view on the DE30 seems to be supportive of bulls.

link do file download linkThe Spanish index marked an abrupt decline after the opening, bulls were able to wipe off most of falls though. Source: xStation5

The Spanish IBEX (SPA35) is by far the most interesting index in Europe today. The fallout of the Sunday’s referendum has caused an immediate decline, however buyers have erased most of gains since then. Notice, momentum of drops has been insufficient to break a support zone located at 10100 points, hence an extended increase could be in the offing. All the same, the price has to be break through a resistance zone in the vicinity of 10400 points before a resumption of a bull market.

link do file download linkJust three stocks listed on the DE30 are trading below the flat line. Source: Bloomberg

Looking through the Asian session one could spot that all major indices managed to close higher with the Australian S&P/ASX 200 (AUS200) leading the gains and climbing 0.85%. Otherwise, the Hang Seng (HKComp) picked up 0.3%, the Shanghai Composite (CHNComp) moved higher all but 0.3% while the NIKKEI (JAP225) gained 0.2%

In Europe, the DE30 is edging higher 0.5%, the CAC40 (FRA40) is going up 0.1%, the EuroStoxx50 (EU50) is trading almost flat whilst the British FTSE100 (UK100) is rising 0.25%. On top of that, the Spanish SPA35 is losing 0.8%, declines have been much larger though. Notice, the outcome of Sunday’s referendum is unlikely to be a long-term drag on the euro but it may rattle the Spanish stock exchange especially in the near-term.

Company news

The German lender Deutsche Bank (DBK.DE) agreed to pay $190 million to settle US litigation accusing it of rigging prices in the roughly $5.1 trillion a day foreign exchange market. The stock is trading 0.8% higher despite the news.

In turn, Deutsche Post (DPW.DE) reportedly plans to test delivery vans equipped with fuel-cell drives, according to German magazine Der Spiegel. Shares of the logistics group are gaining 1.3%.