- DE40 loses nearly 0.3% on a wave of declines in German automotive sector stocks; Volkswagen, Porsche, BMW and Daimler Truck shares are discounted within 1 to 3%
- Donald Trump announced priority 25% tariffs on goods from Mexico and Canada; evils on goods from China are to increase by 10%
- Deutsche Telekom (DTE.DE) gains 0.9% after recommendation change at Oddo BHF
- Fears of more layoffs at European companies due to energy prices are growing; however, EURUSD is gaining slightly today and testing 1.05 after recent sell-offs
The trading session in Europe is being dictated by stock sellers after declines in Asia and mixed sentiment on Wall Street, where recent gains continue to be erased by Nvidia (NVDA.US), and sentiment on indices is weakening slightly.The market is turning its attention, gradually, towards risk factors.
- Trump's declared tariffs are expected to be announced as soon as he is sworn in - the market took the announcement as a strong signal that the 'new administration' is not joking and intends to pursue aggressive policies in this regard, potentially hitting European manufacturers and industrial companies.
- Volatility in the stock markets may increase around 3 PM GMT, when data on U.S. consumer sentiment, home sales and the regional Richmond Fed index will be published. On the German stock market, attention is focused on the automotive sector, which continues its recent discounts. Shares of Bayer, Hugo Boss and ProSieben Sat1 are also losing in 3 to 4% range. Among large German companies, a 1.5% gain stands out virtually exclusively for Rheinmetall (RHM.DE).
DE40 (D1 interval)
DAX futures are losing about 0.3% today, with key support running at 18900 and 19000 points. Bulls are struggling to rise above the EMA50 (orange line), which could potentially herald the end of the correction. The index has recently defended 19100 points (23.6 Fibo retracement of the last upward impulse), and pressure to retest these levels could indicate a higher probability of launching a larger downward impulse.
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European stock market sentiment is noticeably weaker today. Tesla and Nvidia's ADRs are recording declines. Source: xStation5
Germany's industrial and materials sectors are recording another weak session today. Germany's largest steelmaker Thyssenkrupp is also erasing recent gains. Source: Bloomerg Finance L.P.
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