• European stock markets have opened higher ahead of PMIs scheduled for tomorrow
  • DAX (DE30 on xStation5) recoups yesterday’s losses
  • Heidelberg Cement (HEI.DE) is the best performing stock on a possible Polish infrastructure boom

The European markets seem to settle down across the board after a few awful events taking place over the course of recent days (incl. terrorist attacks in Spain, the North Korea’s warning towards the US). Another test for stocks is expected to come tomorrow when preliminary readings of PMIs from the European economies are published. At first, let’s begin with a technical analysis.

link do file download linkThe DE30 has been able to recoup its yesterday’s losses but has failed to break a 50% retracement thus far. Source: xStation5

An hourly chart seems to suggest that bears have become slightly too complacent at the beginning of the day. After an abrupt increase in recent minutes, the price has struck a first resistance in form of a 50% retracement of a downward move from a peak marked at 12300 points. Nonetheless, it does not mean that bulls will not be able to break it ultimately. If it happens, they could take aim at an upper limit of a descending channel better visible on a daily time frame.

On the other hand, the price drew a meaningful bullish gap which can be tried to be closed in the future. The similar scenario took place several days ago when the price marked a bullish gap as well which was closed yesterday. However, it’s hard to envisage how far the price moves before it tries to move down in order to close the gap. To sum up, 12155 points is a level to keep a close eye on it and one could assume that bulls will manage to breach it while US futures are pointing to a higher open later in the day as well.

link do file download linkAlmost all stocks listed on the DE30 are rising in early trading with Heidelberg Cement (HEI.DE) being the best performing one. Source: Bloomberg

Looking at the Asian session there were gains all but across the board. The sole index which did not manage to close above the breakeven was the Japanese NIKKEI (JAP225) losing a mere 0.05%. Otherwise, the Shanghai Composite (CHNComp) added 0.1%, the Australian S&P/ASX 200 (AUS200) picked up 0.4%. The Hang Seng (HKComp) turned out to be by far the standout one gaining as much as 2.2%.

Elsewhere, the European equity markets have started off on the right foot with the British FTSE100 (UK100) being the strongest index gaining more than 0.7%. On top of that, the DE30 is adding 0.7%, the CAC40 (FRA40) is edging up 0.5% while the EuroStoxx50 (EU50) is increasing 0.6%.

Company news

Heidelberg Cement (HEI.DE) is gaining the most within the DE30 on improving prospects for Poland which is expected to become one of the key Europe’s construction-industry market. The country’s legal preparations to increase the use of public-private partnerships are intended to bring about a modernization of its infrastructure. The stock is rising as it remains clearly exposed to the Polish segment.

In turn, Deutsche Bank (DBK.DE) is among declining stocks but losses are almost imperceptible. As for the latest revelations it’s worth mentioning that the German lender appointed Paul Arni as chief wealth management Switzerland as the company wants to establish business in Switzerland as a separate entity.