DE30: Upbeat sentiment in Europe


 Angela Merkel aims at swift coalition talks  
 DAX (DE30 ) distance from the all-time highs  
 Bayer (BAY.DE) gains on the Missouri claims dismissal  
US trading session was mixed with S&P 500 (US500) posting an unnoticeable gain. In Asia Hang Seng extended its gains with an abrupt surge while other major benchmarks were little changed. European session kicked off with gains of majority of the significant stock benchmarks.
DE30 struggles a notch below 13330 pts mark.

Taking a look at the DE30 daily chart one can see that they yesterday’s declines were halted a notch above 13200 pts support level after surpassing both 13330 mark and the local support level of 21-day moving average. During today’s session a downward scenario may be still on cards however firstly bears need to once again break below a above mentioned moving average. If it happens declines may deepen even below 13200 support level that proved its significance as a upper limit of the consolidation range from the November-December period. On the other hand, if bulls want to resume the uptrend and break above the recently reached all-time highs at 13600 pts handle they must defeat 13330 pts resistance level and a local resistance at the 8-day moving average first.

US equities traded mixed yesterday with S&P 500 (US500) advancing as little as 0.06%. Looking at other benchmarks from Wall Street Dow Jones (US30) outperformed its peers noting a 0.54% upside. Moving on to Asian stock markets we cannot draw a single tendency for the region. Japan’s Nikkei 225 (JAP225) posted a minor decline of 0.16% on the back of stronger yen. The japanese currency is trading at higher levels than companies expected therefore lowering a chance for an upward revision of annual profit forecasts. Shares from China once again were a top movers with Hang Seng CE (CHNComp) posting a stellar advance of 2.51%. Australian stock markets were closed today due to holiday.

Following yesterday’s worst drop of European equities in a month benchmarks from the Old Continent edge higher on the opening. The sentiment on the stock markets in Europe looks strong as even stronger post-ECB euro is unable to hold it this morning. As Friday’s lacks major events for the region’s stocks investors’ attention will be most likely paid to the Davos where several central bankers will deliver speeches today thus a hints on the imminent monetary authorities’ priorities may be revealed. Moreover, it is worth to stress that the German coalition talks have begun and according to Chancellor Angela Merkel both CDU and SPD are set to work swiftly on the deal as people await the end of the political impasse. After the first hour of trade the German DAX (DE30) has advanced 0.19% while the UK FTSE 100 (UK100) has traded 0.34% higher. The French equities outperform their European peers with CAC 40 (FRA40) gaining almost 0.8%.
Bayer (BAY.DE) gains on the Missouri claims dismissal.

Company News

Bayer (BAY.DE) is a top mover among DAX index components today. This can be accounted to the news from Missouri where the German pharmaceutical company won a dismissal of claims filed by 92 non-Missouri residents alleging they were harmed by its contraceptive Essure. The Missouri federal court reasoned that it lacks jurisdiction over non-residents’ claims. After the first hour of trade Bayer’s shares have traded over 1.2% higher.