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Three new coronavirus cases confirmed in Germany
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DE30 rebounds but faces resistance at 13375 pts
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Deutsche Bank (DBK.DE) breaks to 9-month high
European stock market opened with bullish price gaps on Wednesday as investors continue to look past virus concerns. The German DAX is lagging behind and it can be to some extent related to three new coronavirus cases reported in the country. Elsewhere, stocks from Switzerland and Spain lead advance.
New coronavirus cases confirmed in Germany
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Open account Try demo Download mobile app Download mobile appThree new cases of coronavirus have been reported by the Bavarian health ministry. All three persons involved work at the same company as the person with the first confirmed case. A woman from China, who was visiting the company, is said to be the source of transmission. The woman realized that she was sick on her flight back to China. What is especially worrisome is that the transmission occurred before the original carrier had any noticeable symptoms.
Source: xStation5
The German DAX halted downward move at the upward trendline and jumped back above 13300 pts afterwards. However, recovery was halted at the support zone ranging around 13375 pts. The index looks like it is painting a new lower high, threatening to return to declines soon. In such a scenario, traders should focus on the support zone at 13290 pts, where 50-hour moving average can also be found. The aforementioned resistance zone is the first level to watch for buyers. The upper limit of the Overbalance structure can be found at 13390 pts and a break above could hint at short-term trend reversal.
DAX members at 9:58 am GMT. Source: Bloomberg
Infineon Technologies (IFX.DE) gains in today’s trading thanks to a solid earnings report released by Apple. The US tech firm showed much higher earnings than expected and revenue that topped $90 billion in a quarter for the first time in the company's history. Infineon is one of Apple’s suppliers.
Deutsche Bank (DBK.DE) announced that it will postpone annual pay raises for employees until April. Pay raises at the German lender usually took effect at the start of a new year. April date is set to be in effect in the future as well. The move is set to be related to the need for cost cuts. The German lender will release 2019 results tomorrow.
Lufthansa (LHA.DE) can be found among DAX's top performers today after it has received an upgrade to “buy” at Berenberg. The Bank chose the German carrier as its top European pick as it expects Lufthansa to outperform amid low expectations for the sector.
Deutsche Bank (DBK.DE) finally managed to break above the resistance zone ranging near the €7.75 handle. The stock is trading at the highest level since April 2019. The nearest resistance to watch can be found at €8.20. Deutsche Bank will release the 2019 earnings tomorrow. Source: xStation5
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