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European equities erase some of recent gains
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DE30 keeps failing at 10,000 pts resistance level
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Infineon Technologies (IFX.DE) withdrew guidance for fiscal-2020
After 4 days of strong upward move, some profit taking can be spotted on European stock exchanges on Friday. German DAX trades over 2% lower on the day while UK FTSE 100 pulls back almost 4%. US futures also trade 2% lower. Debates over the economic relief package in the US House of Representatives later today could spur some additional volatility.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 keeps testing the resistance zone ranging around 10,000 pts. However, some profit taking can be observed on Friday morning. The index pulled back towards the support zone at 9,700 pts. Should it break out of the 9,700-10,000 pts range, the levels to watch at 9,530 pts (support) and 10,430 pts (resistance). Both are marked by numerous price reactions. Traders should keep in mind that the index has almost reached 38.2% retracement level of the downward move started in late-February therefore the ongoing pullback could be a start of another leg lower. Potential market moving events for today are debates and votes in the US House of Representatives (starting 1:00 pm GMT). Passage of the economic relief package is almost a done deal but delaying a vote into the weekend could spoil moods on the market.
Infineon (IFX.DE) jumped over 40% off the recent low but ran into the resistance zone at €14.50. This zone is marked with lows from June-August 2019. A pull back can be observed today. In case bulls fail to defend low from June 18, 2019 (€13.43), price may look towards recent low at €10.60. Source: xStation5
Infineon Technologies (IFX.DE) is one of the worst performing DAX stocks today. Semiconductor company decided to withdraw its outlook for fiscal 2020, saying that it is unable to make reliable earnings projections due to the coronavirus pandemic. Earlier, the company projected revenue to grow 5% in the fiscal year ending September 30. Infineon said that all of its production facilities were still operational but some operate at reduced levels.
Volkswagen (VOW3.DE) said that production of Volkswagen brand cars and vans will remain suspended until April 9. This is 4 days later than originally planned. The company said that demand for vehicles remains depressed and supply chains are still distorted. The carmaker is working on a package of measures to protect employees’ health.
BASF (BAS.DE) informed that 4 persons working at one of its production plants in the United States tested positive for the novel coronavirus. Infected persons as well as those who had direct contact with them were put into quarantine.
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