Summary:
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Erdogan considers holding referendum on EU accession
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DAX (DE30 on xStation5) struggles to break below the short term support zone
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Infineon (IFX.DE) plunges as reports of China hacking the US sunk tech stocks around the World
Steep declines were observed on Wall Street yesterday. All three major benchmarks from the US pulled back with Nasdaq (US100) being subject to the biggest sell-off. Asian equities were trading mixed with the Australian S&P/ASX 200 (AUS200) adding 0.15% and Japanese Nikkei (JAP225) closing 0.58% lower. In China Hang Seng (CHNCOmP) trades subtly lower.
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Open account Try demo Download mobile app Download mobile appMost of the blue chips indices from the Old Continent launched Friday’s trading lower. However, the scale of declines is quite small. The biggest decline was observed on the Belgian stock market while Swedish equities turned out to be the most resilient. Miners and technology stocks performed the worst in the first minutes of trade while real estate and personal goods companies were among leaders.
Downward pressure of the DE30 does not seem to ease. However, the German benchmark struggles to break below a short term support zone ranging 12150-12175 pts. In case bulls manage to defend this area once again and push price higher later on we may experience range trading in the days to come. The upper bound of the potential consolidation range could be the resistance zone ranging 12380-12420 pts. Source: xStation5
Turkey was waiting since 2005 for the decision on whether the country will become a member of the European Union and it looks like President Erdogan has enough of waiting. Erdogan said that he considers holding a referendum in which he will ask Turkish citizens whether they want Turkey to continue with an accession or not. Erdogan claims that the process takes so long because of prejudice. Namely, he said that EU reluctance towards agreeing on Turkish membership results from the fact that the bloc does not want a mostly Muslim country in its structures. Erdogan said that in case the decision to hold referendum is made the steps to do it could be taken immediately. Let us recall that the Turkish accession process complicated after an attempted coup in 2016.
Major European stock indices after the first hour of trade:
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DAX (DE30): -0.50%
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FTSE 100 (UK100): -0.50%
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CAC40 (FRA40): -0.32%
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IBEX (SPA35): -0.42%
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FTSE MIB (ITA40): -0.63%
Infineon (IFX.DE) is one of the worst performing stocks in the DAX index today after global tech sell-off took its toll on the German semiconductor manufacturer. Source: Bloomberg
Company News
Infineon Technologies (IFX.DE) is one of the worst performing DAX stocks on Friday morning. No particular news concerning the company spurred lately and today’s decline is mostly attributed to the global trend. Namely, tech companies shares dropped during the US and Asian trading sessions after reports surfaced that China hacked US spies. Even beat offered by Samsung earnings report did not change the sentiment therefore traders should be cautious when trading IT stocks today.
Infineon (IFX.DE) climbed into the resistance zone ranging 20.45-21.05 but failed to hold this gains. In turn we saw price pulling back and out of the aforementioned zone. In case the bears continue to dominate the market we may see this stock testing lows from the end of September at 19.50. Source: xStation5
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