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European indices pull back as coronavirus cases surge
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DE30 pulls back below 13700 pts
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Carmakers under pressure after dismal sales data from China
European stocks experienced a soft opening on Thursday as investors got spooked by a massive surge in the number of confirmed coronavirus cases. The German DAX pulled back below the 13700 pts handle at the beginning of today’s session. Carmakers, refiners and miners can be found among the biggest European laggards.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appThe German DAX pulled back below 13700 pts at the beginning of today’s session. The index is testing the upward trendline at 13665 pts at press time. Should it break lower, the next support can be found slightly lower at 13650 pts. However, the significance of this level is not major therefore traders may want to focus on key support at 13600 pts. Apart from being a psychological barrier, this level is also marked with the previous price reactions and the lower limit of the Overbalance structure (yellow box). In case of a rebound occurs later today, bulls should focus on the aforementioned 13700 pts handle.
DAX members at 9:36 am GMT. Source: Bloomberg
Stocks from the automotive sector trade under pressure today. One reason behind such a situation is increase in risk aversion caused by spike in confirmed coronavirus cases. Another reason is 20% YoY plunge in China’s wholesale car sales in January.
HeidelbergCement (HEI.DE) preliminary sales volume figures for 2019. The German company said that cement and clinker sales volumes dropped 3.1% in 2019 and reached 125.9 million tonnes. However, ready-mixed concrete sales volume increased 3.4%. Aggregated sales volumes came in at 308.3 million tonnes and were slightly lower than in 2018.
Commerzbank (CBK.DE) reported earnings for Q4 2019 ahead of the session open today. The German bank generated revenue of €2.17 billion against an expected €2.12 billion. Net loss amounted to €54 million in the final quarter of 2019. However, the company showed an operating profit of €250, that was 8% higher than expected. Net interest income of €1.31 billion beat the company's own guidance (€1.26 billion). Commerzbank declared a dividend of €0.15.
RWE (RWE.DE) is one of DAX’s leaders today. The company gains as risk-off moods tend to boost defensive stocks, like utilities. Moreover, the company received a price target boost at Morgan Stanley. Bank’s analyst raised the target for the stock from €36 to €40.
HeidelbergCement (HEI.DE) plunged at the beginning of today’s session after the company reported drop in sales volumes in 2019. However, much of the initial drop was already recouped and the stock climbed back above the upward trendline. The near-term resistance to watch can be found at €66. Source: xStation5
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