DE30: Optimism arrives at the global stock markets


Optimism returns to the global stock markets  
DAX (DE30 ) halts declines at the 13200 pts mark  
Daimler (DAI.DE) releases its financial report  
Minor gains posted by the benchmarks from Wall Street during yesterday’s session halted recent selloff on the global stock markets as the optimism spread to Asia. Major European benchmarks opened higher as the upbeat moods arrived in the region. 
DE30 upward impulse struggles ahead of the moving averages. Source: xStation5
Looking at the DE30 daily chart one can see that the recent declines have been halted yesterday by the support level at 13200 pts handle that has proved its significance as the upper bound of the late-2017 consolidation range. German benchmark opened higher today but the gains seem to be limited by the 21- and 8-session moving averages that act as a local support levels. If the bulls play dominant role during today’s session we may see a break above towards the 13330 pts resistance level. The case for the bears might be bringing price below 13200 pts mark that has proved to be too strong for them earlier. 

Major US benchmarks posted modest gains yesterday closing January as the best start of the year since 1997. Later on, the optimism spread to the Asian stock markets that launched February with solid gains in Japan and Australia as Nikkei 225 (JAP225) closed almost 1.7% higher, whilst S&P/ASX 200 (AUS200) advanced nearly 0.9%. On the other hand, Chinese equities underperformed severely with Hang Seng CE (CHNComp) declining 0.94% marking the worst week since 2016. Moreover, it is worth noting that the Indian shares tumbled severely as the country’s government proposed a long-term capital gain tax but this losses have been erased before the session closed. 

Stock markets in Europe opened higher amid upbeat moods seen on the other continents. The gains can be seen on all the major stock benchmarks from the Old Continent with banking and technology sectors leading the gains. Moving to the European politics it is worth stressing new developments in the Brexit thread. UK Prime Minister Theresa May opposed EU attempts to prolong protection for its expats until 2021. PM May said that the European nationals who arrive in the UK prior to the Brexit date set for March 2019 should have different rights than those who arrive during 21-month transition period after that date. Apart from that, German manufacturing PMI print has already been released coming out at 61.1 what is a minor downside against 61.2 pts seen last time. After the first hour of trade the German DAX (DE30) has traded 0.4%, the French CAC 40 (FRA40) has gained 0.7%, whilst the UK FTSE 100 (UK100) advanced 0.22%. 
DAX components posting declines on Thursday morning are in minority.

Company News

Daimler (DAI.DE) is an interesting stock to watch among DAX components as it has released its financial report for the 2017. The company reported revenue of almost 43.59bln euro against 43.47bln expected. The earnings beat forecasts by a huge margin of 43.1% with EPS coming out at 2.99 against 2.09 expected. The record profits can be accounted to the strong sales of SUV and E-class cars. Daimler is the fourth company from the DAX index to report its report during this earnings season and the first to beat estimates in terms of both, revenue and earnings. After the first hour of trade Daimler shares has traded around 0.7% lower.