Summary:
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Deutsche Bank CRO warns that no-deal Brexit poses threat to financial stability
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DAX (DE30 on xStation5) still sits below the 12600 pts handle
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Aston Martin eyes an IPO on the London Stock Exchange
During the Asian session we have once again seen decent performance of the Australian and Japanese equities and once again Chinese companies lagged behind region peers. In Australia S&P/ASX 200 (AUS200) added 0.75% while in Japan Nikkei moved 0.15% higher. The Chinese Hang Seng (CHNComp) is trading 0.3% lower at press time
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Open account Try demo Download mobile app Download mobile appTaking a look at the European quotation board in the first minutes of Wednesday’s trading we can see that the opening on the Old Continent was rather mixed. Gains were observed on the German, French and UK bourses while companies from Spain and Italy launched today’s session lower. Russian stocks were the biggest underperformers from the region following the opening. Travel companies were leading gains in Europe in the first minutes of trade while retailers and refiners took the biggest step back.
After yesterday’s morning surge DE30 failed to make a repeated attempt to break above the resistance level at 12600 pts. Since then the German benchmark has been trading sluggishly in between 12510 pts and 12560 pts. In case no price impulse surfaces we may see DE30 moving within this range throughout the session as in today’s calendar no readings from the Eurozone has been scheduled. Source: xStation5
In our morning analysis we wrote about rumours saying that UK and EU may extend the deadline for reaching the Brexit deal to mid-November. Staying in this topic it is worth to mention words of Sylvie Matherat, Chief Regulatory Officer of the Deutsche Bank. Matherat said that no-deal Brexit should be avoided at all cost as it poses a great risk to the financial stability. In order to avoid this she claims that high degree of clarity is needed on whether the contracts will be honored or not and that supervisory authorities must cooperate closely. She added that following the UK departure from the EU structures it is unlikely that there will be a single European financial center with a chance of many such hubs surfacing. Speaking of London she said that it is likely to play a leading role as a financial center but will most likely lose its dominant position.
Major European stock indices after the first hour of trade:
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DAX (DE30): +0.13%
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FTSE 100 (UK100): +0.13%
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CAC 40 (FRA40): +0.13%
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IBEX 35 (SPA35): -0.40%
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FTSE MIB (ITA40): -0.10%
The German DAX components are generally trading higher after the first hour of trade. Source: xStation5
Company News
Thyssenkrupp (TKA.DE) is still running its business without dedicated leadership after departures of both CEO and Chairman earlier this summer. Guido Kerkhoff is said to serve as an interim CEO until Supervisory Board proposes a candidate for this post. According to the Platow newspaper, such a candidate may have been already found. Namely, Marcus Schenck, a former deputy CEO of the Deutsche Bank, is said to be high on the list of potential candidates. While Schenck definitely has some experience in running a company rumours surface that such proposition may face strong opposition from the labor unions. Do notice that the position of labor unions within the Thyssenkrupp is considerable.
Elsewhere, Aston Martin, a luxury car maker, is preparing an IPO on the London Stock Exchange. If listing is successful Aston Martin will be the first UK carmaker to be listed on LSE in many year after Jaguar, Bentley and Rolls-Royce were sold to foreign companies. As a result of going public the company may be initially valued at $6.38 billion, according to Reuters report.
Thyssenkrupp (TKA.DE) bounced higher after slumping to the €18.90 handle for a brief moment. The German stock is trading within the range of the resistance zone and future price movements may depend on the direction of a break out. Source: xStation5
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