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Stocks drop after FOMC minutes release
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DE30 tested 50% retracement at 12,750 pts
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Deutsche Telekom (DTE.DE) reaches agreement with Orange over Romanian assets
Stocks in Europe are trading lower on Thursday after less dovish than expected FOMC minutes. Major indices from Europe trade 1-1.5% down on the day while Russian stocks are top laggards with the RTS index dropping over 2%. ECB minutes are scheduled for release at 12:30 pm BST but they rarely have an impact on equities markets. US jobless claims data at 1:30 pm BST could have an impact if it bucks a recent trend and shows rising claims.
DE30 pulled back and tested a support zone marked by 50% retracement of late-July correction (12,750 pts). The index managed to recover later on but further upside is being limited by the 200-hour moving average that acts as a resistance now (purple line). Note that a bearish bias could appear once the index makes daily close below the lower limit of Overbalance structure at 12,800 pts. Source: xStation5
Deutsche Telekom (DTE.DE) has reached an agreement with Orange over sale of assets. Under the agreement, Orange will take over Deutsche Telekom's assets in Romania, mostly fixed line operations.
Fitch reaffirmed the credit rating of HeidelbergCement (HEI.DE) at "BBB-" with a negative outlook. Credit rating agency said that a negative outlook reflects a slower deleveraging process due to expected lower sales and profits. Fitch also announced that it will not update or publish ratings for HeidelbergCement going forward due to commercial reasons.
Schaeffler (SHA.DE) has scheduled an Extraordinary General Meeting for September 15. A capital increase of is the only item on the agenda. An issuance of up to 200 million new shares will be discussed.
TAG Immobilien (TEG.DE) reported a 9% jump in Q2 fund from operations, to €44.5 million. Company signed contracts for acquisition of 4,200 apartments year-to-date and said that its business results are almost unaffected by Covid-19 pandemic. TAG Immobilien decided to confirm 2020 guidance.
DAX members at 10:11 am BST. Source: Bloomberg
