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European markets continue to sink
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DAX dropped to 13,400 pts
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BMW released preliminary Q4 results
European markets are trading significantly lower for the second day in a row as risk-off moods prevail all around the world. DAX is trading over 2% lower and most of the European blue-chips indices lose over 1.5%. Uncertainty triggered by abnormal gains of US small-cap stocks pumped by retail investors has caused fund managers to reduce risk exposure. US GDP data release at 1:30 pm GMT is a key macro event of the day.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 experienced another strong downward move today. German index plunged at the start of the European cash trading and reached a daily low at 13,300 pts. A point to note is that we are currently observing an attempt of climbing back above the 13,400 pts - the lower limit of the Overbalance structure. Should bulls succeed and manage to keep the index above until the end of the day, an ongoing move could be viewed just as a correction. However, closing daily candlestick below 13,400 pts could create a bearish bias and encourage sellers to become even more active. In such a scenario, 13,100 pts will be the first major support to watch.
Company News
BMW (BMW.DE) released preliminary results for Q4 2020 yesterday. German carmaker said that it expects free cash flow in the Automotive segment at around €2.8 billion, up from €1.5 billion in Q4 2019. Full-year free cash flow in the segment is expected at around €3.4 billion. Company expects a full-2020 EBIT margin at the upper end of 0-3% range. BMW continues to see strong demand in China.
Infineon (IFX.DE) is one of the worst performing DAX members today. Company as well as the whole semiconductor sector is underperforming following Apple earnings release. While Apple managed to beat earnings and revenue forecasts, the company declined to give guidance for the future periods. Moreover, Apple said that it expects sales of its wearable products to decline in Q1 2021. Apart from that, Samsung said that Q1 results are likely to be weak.
Allianz (ALV.DE) got approval to set up an asset management unit in China. This would be the first wholly foreign-owned asset management company in China.
According to Reuters report, European Central Bank has asked Christian Sewing, CEO of Deutsche Bank (DBK.DE), to delegate day-to-day oversight over the investment banking division to another board member.
BMW (BMW.DE) is trading lower today amid broad risk-off moods. Stock has tested downward trendline recently but failed to break above. In case the ongoing pullback pushes price below recent local low at €68.00, investors attention would shift to the support zone at €65.00, that is marked with previous price reactions as well as the lower limit of the Overbalance structure. Source: xStation5
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