• Total number of COVID-19 cases surpassed 15 million
• US ordered China to close its consulate in Houston
• Allianz (ALV.DE) sued by the pension fund
• Allianz (ALV.DE) sued by the pension fund
Major European indices are trading in the red on Wednesday, a day after European leaders signed off on their historic 750 billion-euro recovery package. Investors remain concerned about the surging numbers of COVID-19 cases. The number of people infected with the coronavirus across the world hit 15.10 million, of which over 619 thousand people have died. Yesterday President Trump changed his rhetoric and said that the surge in infections would “get worse before it gets better”. US President encouraged citizens to wear masks. Also rising tensions between Washington and Beijing weighed on market sentiment. According to the Chinese foreign ministry spokesman Wang Wenbin, US government ordered Beijing to close its consulate in Houston. China condemned the move and threatening retaliation. On the Brexit front, UK and the EU most likely won't be able to sign a trade deal before July's deadline as the parties failed to reach agreement on fishing rights, the deal's governance and the European Court of Justice's role.
Yesterday DAX (DE30) managed to break above the key resistance level at 13,000 pts and printed a fresh post-pandemic high. However German index launched today’s session in mixed mood as investors await further news regarding additional US fiscal stimulus. As long as the price sits above aforementioned resistance level, the continuation of a upward trend towards all-time highs at 13,800 pts looks probable. On the other hand, breaking below the 13,000 pts handle may lead to a bigger downward correction. Local support is located at 12,765 pts. Source: xStation5
DAX members at 10:30 am BST. Source: BloombergThe Arkansas Teacher Retirement System sues Allianz (ALV.DE), claiming the money manager violated its fiduciary responsibilities and abandoned risk controls when it sought to reverse losses by doubling down on a series of money-losing trades which left Allianz's Structured Alpha funds "dangerously exposed to even the slightest increase in market volatility or decline in equity prices - the very conditions that Allianz economists, and many others, warned were on the immediate horizon". As a result pension fund supposedly lost at least $774M.
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Allianz (ALV.DE) – stock price is testing the upper limit of the ascending triangle pattern which is additionally strengthened by 200 MA (red line). In case of a break higher local resistance can be found at €204.64 per share. However, one should be aware that in case of a break below the lower limit of the triangle pattern, downward move may accelerate. Potential target for sellers is located at €176.95 per share. Source: xStation5
Tesla Inc. (TSLA.DE) - CEO Elon Musk unlocked the second tranche of his pay award. According to Bloomberg, company's average trailing market value over six months rose above $150 billion on Tuesday, despite a dip in the company’s share price. That means Musk is now able to exercise an additional 1.69 million stock options, though he must wait at least five years before he can sell them. The automaker is due to report quarterly earnings today.
Lufthansa (LHA.DE) together with other major US and European Union airlines asked the EU and White House on Tuesday to consider a joint U.S.-EU program to test airline passengers for COVID-19 as a way to allow people to travel once again between the United States and Europe. Lufthansa spokesman Andreas Bartels said the airline "wanted to raise this topic because we think there is the possibility to test people at the airport, as we have demonstrated in Frankfurt."
According to German newspaper Handelsblatt, former COO for payments firm Wirecard (WDI.DE) Jan Marsalek has apparently gone into hiding in Russia and is under the supervision of Russian military intelligence. Mr Marsalek, which was most likely a key figure in the meltdown of the company's Germany division, brought “significant sums” of bitcoin from Dubai to Russia prior to going into hiding as apart of “dubious operations” conducted by Wirecard.
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