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European indices continue declines
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DE30 tests key support at 12,100 pts
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Covestro released Q3 2020 earnings
During the Asian session it looked like European indices may be set for a recovery today with futures market trading higher. However, gains were quickly erased after the launch of cash session. Most of the European indices trade over 0.5% lower at press time. Polish WIG20 (W20) outperforms thanks to solid gains of two largest stocks.
DE30 continues to decline and is testing a key mid-term support today. 12,100 pts is marked by a mix of technical support levels - 23.6% retracement of post-pandemic recovery move, 200-session moving average (purple line) and the lower limit of the Overbalance structure (yellow box). Breaking below would hint at bearish trend reversal and could exert additional pressure on the German index. Source: xStation5
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Covestro (1COV.DE) released Q3 2020 earnings report today ahead of the session open. Net income stood at €179 million in the quarter, marking a 21% YoY increase and coming above consensus estimate of €112 million. Revenue declined 13% YoY to €2.76 billion but this was mostly due to lower prices (exp. €2.85 billion). Covestro confirmed EBIT 2020 guidance of around €1.2 billion, at the upper limit of previous forecast range (€0.7-1.2 billion).
Schaeffler (SHA.DE) released preliminary results for Q3 2020. Revenue at €3.396 billion was 2.6% YoY lower but higher than expected. Solid sales results were possible due to strong demand in China. EBIT margin improved from 9.1% in Q3 2019 to 9.4% in Q3 2020. Schaeffler will release a full quarterly report on November 10.
DAX members at 10:10 am GMT. Source: Bloomberg
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