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European indices slide amid lack of tariff news
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DE30 fails to break above the pack of resistance levels
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Wirecard (WDI.DE) trades under pressure following another Financial Times report
European stocks are trading lower on Wednesday as investors keep awaiting news on the next round of Chinese and US tariffs. DE30 surged at the beginning of today’s cash session but an upward move was put to a halt at the 13150 pts handle. The index later retested support at the 13050 pts.
Stock markets await trade war news and FOMC decision
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Create account Try a demo Download mobile app Download mobile appSome reports surfaced yesterday saying that China and the United States are eager to postpone tariff action scheduled for December 15. However, lack of official confirmation of these reports made investors wonder whether we will see such a move. In turn, shares in Europe trade under pressure. Moreover, FOMC decision will be announced this evening (7:00 pm GMT) and any hints on more easing could support equity valuations. However, it should be noted that the Federal Reserve is expected to leave rates unchanged and repeat previous message.
Source: xStation5
DE30 managed to recover from yesterday’s slump but continuation of the upward move looks questionable. The index rallied at the beginning of today’s cash session but rally was halted at the 13150 pts handle. The place is no indifferent as it marks the lower limit of the previous consolidation range as well as the upper limit of the Overbalance structure (yellow box). Another important resistance - 200-hour moving average (purple line) - can be found in the same area. A failure to break above this mix raises hopes for a continuation of the downward move. However, the index needs to break below the key support zone at 13050 pts. Should it do so, the way towards lows at 12900 pts would be left open.
DAX members at 9:41 am GMT. Source: Bloomberg
Company News
Wirecard (WDI.DE) can be found among DAX top laggards today. The Financial Times reported that critics of the company were targeted in a surveillance operation in London. The operation is said to have been aimed at determining whether share price of Wirecard is being manipulated. The German payments firm denied having any involvement in the operation.
Telefonica Deutschland (O2D.DE) reiterated financial outlook for 2019 and said that it still expects revenue to grow at least 5% in 2020-2022 period. The company decided to declare lower dividend for the full 2019. The payout will amount to €0.17 per share against €0.27 per share previously.
Analyst actions
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Osram Licht (OSR.DE) was cut to “sell” at Nord/LB. Price target was set at €41.
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HelloFresh (HFG.DE) was cut to “neutral” from “overweight” at JP Morgan. Price target was set at €20
Share price of Wirecard (WDI.DE) is pressure by another Financial Times report today. The stock reached the lowest level since late-March 2019 at the beginning of today’s session but managed to recover slightly later on. Investors should focus on the €107 handle, a low from the beginning of April. Failure to close above it could see the price slide towards the support zone at €97. Source: xStation5
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