• European equity markets have started the day higher
  • DAX (DE30 on xStation5) has bounced off a resistance
  • RWE (RWE.DE) rises as the company could become a leader in Asian power markets

The European stock markets have begun Thursday’s trading quite positively, gains have been no so heavy so far though. One could assume that investors could become more cautious given what we saw on Wall Street yesterday as all major indices failed to close above the breakeven line. Otherwise, the beginning of a symposium in Jackson Hole could make investors more careful as well as two pivotal speeches from Chairs of the FED and ECB will take place an the end of the week.

link do file download linkThe DE30 has resumed its descending trend after it has failed to break a key resistance recently. Source: xStation5

Having looked at the chart above we could reason out that a further downward move could emerge as the index failed to break out of a crucial resistance during the yesterday’s session. For that reason, sellers could keep a lid on the market steering the price towards an important support area placed at 12080 points.

Having said that, until the price breaks either an upper or a lower boundary of a triangle formation, one could expect a narrowing range to persist. It’s especially true once we have a look at the EURUSD where the pair stays within a consolidation as well exerting little pressure on sharper swings on the DE30.

link do file download linkStocks within the D30 remain quite calm with move ranging from -1% to +1%. Source: Bloomberg

The Asian session brought quite contained moves on the equity markets, maybe except the Hang Seng Composite (HKComp) which managed to add as much as 1%. Elsewhere, the Australian S&P/ASX 200 (AUS200) gained 0.14% while both the NIKKEI (JAP225) and the Shanghai Composite (CHNComp) lost 0.4% and 0.5% respectively.

Looking at the European markets, they are holding onto their gains with the Italian FTSE MIB (ITA40) being the best performer one gaining all but 0.5%. Moreover, the DE30 is trading flat, the CAC40 (FRA40) is going up 0.1%, the EuroStoxx50 (EU50) is edging higher 0.2% while the FTSE100 (UK100) is crawling up 0.15%.

Company news

As far as stocks listed on the DE30 are concerned, it’s worth mentioning RWE (RWE.DE) which is gaining after the news that market liberalization in key Asia-Pacific countries could offer EU utilities (for one RWE) an opportunity to establish and build up their presence in commodity trading in the region and generate extra income.

Beyond that, Fresenius (FRE.DE) is gathering momentum in the morning as well. It’s a consequence of a successful credit agreement which was amended. The new one consists of revolving term loans with maturities in 2021 and 2022.