Summary:
- Allianz (ALV.DE) sinks after general annual meeting
- DAX (DE30) struggles near the 61.8% Fibo level of last year’s downward move
- HeidelbergCement (HEI.DE) and Deutsche Telekom (DTE.DE) released earnings for Q1 2019
Stock markets from the Old Continent opened lower on Thursday following lacklustre performance of the Chinese equities. Moods deteriorated after another streak of Trump’s tweets showed there is still much uncertainty in the US-China trade talks. French and Swedish equities were among the biggest underperformers on Thursday morning while stocks in Poland managed to resist downward pressure in the first minutes of trade. All 19 sector subindices from the Euro Stoxx 600 index opened lower with miners and insurers leading lower.
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DAX (DE30) experienced some wild price swings this week. The index took a major dive on Tuesday, rebounded on Wednesday and is back in the freefall mode today. Situation is especially interesting as it all happened in the vicinity of the key support zone ranging above the 61.8% Fibo level of last year’s downward move. A break out of the zone with a significant momentum could set the stage for future short-term price moves. Source: xStation5
Allianz (ALV.DE) is one of the worst performing DAX stocks on Thursday morning. This is somewhat strange given outcome of votes at the annual general meeting that took place yesterday. Shareholders decided to vote on the changes to compensation policy for senior executives for the first time since 2010. In turn, the significance of fixed salary and bonuses relating to the company's long term goals increased. As giving more weight to long-term goals makes management’s interest more aligned with shareholders’ one, such a development should be viewed positively. Moreover, 92% of shareholders backed the proposal showing strong support for current management team. Having said that, today’s drop in Allianz share price could be unjustified.
Allianz (ALV.DE) plummeted at the beginning of today’s session. The stock pulled back from the highest level since mid-2002 and is trading in between two swings level - €194.50 and €201.30. In order for an uptrend to be resumed, a break back above the resistance zone €205 could be needed. Source: xStation5
Two DAX members released Q1 earnings results prior to today’s session open - HeidelbergCement (HEI.DE) and Deutsche Telekom (DTE.DE). The former company generated revenue of €4.2 billion, up 15% against last year. The company explained that good weather conditions in Europe and North America helped boost sales volume and pushed profit from current operations before depreciation and amortization 25% higher (€396 million). The company confirmed an upbeat outlook for full-year. The Deutsche Telekom also present better than expected results. Telecommunications company enjoyed 8.7% YoY revenue growth and 4.6% YoY net income growth. The company explained that good performance resulted from solid subscribers’ growth in the United States, that more than offset slowdown in Germany.
DAX members at 8:38 am BST. Source: Bloomberg
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