- European bourses continue its upward momentum
- DE30 bounces off a support zone
- Volkswagen AG among the top performers today
The European equity markets have kicked off the day with gains that have their roots in yesterday’s rise on Wall Street. Markets in Europe are trading higher on Wednesday morning as investors have their an eye on the rate decision from the U.S. Federal Reserve.
The DE30 formed a reverse formation in a demand zone suggesting a stronger move to the upside is likely. Long wicks created in past days could mean that there is a substantial amount of buyers at this stage. Source: xStation5
The DE30 has continued its upward momentum so far and could even reach a daily supply zone between 12562 and 12673 in the best case scenario. However, a prevailing trend seen in longer-term horizon remains skewed to the downside and a reverse could happen anytime.
In Asia, the NIKKEI (JAP225) inched higher 0.48 percent, the Shanghai Composite (CHNComp) gained 0.12 percent, the Hang Seng Composite (HKComp) went higher 0.45 percent whilst the Australian S&P/ASX200 increased 0.87 percent.
Moreover, moods in Europe have been excellent so far with almost all bourses in the old continent being in the green territory. The DE30 is gaining 0.45 percent, the CAC40 (FRA40) is inching higher 0.66 percent, the EuroStoxx50 (EU50) is going up 0.55 percent, whereas the FTSE100 (UK100) is adding 0.64 percent.
Volkswagen AG (VOW.DE), being the top performing company among the DE30 inches up 2.16 percent as an executive who had been accused of helping to cover up the automaker’s diesel emissions fraud agreed to plead guilty. Oliver Schmidt, a former head of Volskwagen’s environmental and engineering center has been accused of knowingly providing false information to American regulators in 2014. Volkswagen admitted that it had rigged diesel models with software – more than 11 million cars worldwide were equipped with the software including 600,000 in the United States.
On the other side of the spectrum, Merck KGaA (MRK.DE) trades lower by 2.06 percent as rising uncertainty about liquid crystals outlook led to a downgrade by Deutsche Bank. Analysts of the Germany-based bank downgraded the stock to ’hold’ from ’buy’ and cut the price target to 106 euros from 120 euros. Moreover, Merck’s outlook was cut to ’neutral’ from ’outperform’ by Credit Suisse adding more pressure to the chemical company.