DE30 opens in red amid COVID-19 and recession worries

European indices launched today's session lower, as investors remain concerned  that surging number of new COVID-19 cases may lead to lockdown reinstatement and negatively impact the global economic recovery. Germany, Italy, and Spain reported 1,876 new cases on Monday, which was up from 407 new cases on Sunday. Spain reported 1,244 new cases on Monday. This was the highest since 22nd May and follows news of a lockdown within the Catalonia region. Several US states continues to report rising number of new coronavirus cases and hospitalizations. Also other countries where the situation seemed to be stable such as Australia and Japan are struggling with an increasing number of infections. Also news from Brussels weighed on market sentiment. The European Commission lowered its GDP forecasts for 2020 and 2021, as the lifting of COVID-19 lockdown measures in some countries was proceeding slower than initially anticipated. According to new projections Euro zone economy will probably shrink by a record 8.7 % in 2020, before rebounding by 6.1 % in 2021 compared with early May estimates of a 7.7 % contraction in 2020 and a 6.3 % recovery next year.

 

Deutsche Telekom (DTE.DE) has intensified its business relationship with  Huawei despite security authorities' warnings, Handelsblatt newspaper reported on Tuesday, citing internal documents. Deutsche Telekom relies heavily on equipment from Huawei. The Chinese company is also  a supplier for its 5G network and broadband expansion, cloud service and television offering. Both companies had agreed to increasingly rely on "U.S.-free" network components for Telekom's 5G network, the newspaper said.
Deutsche Telekom (DTE.DE) has been trading in a local sideways move recently. Company’s  stock launched today’s European session with a decline and is approaching upward  trendline. Should a break below the trendline occur, downward move towards €14.40 per share may accelerate.  However, in case of a break higher, upper limit of the range at €15.56 per share may come into play. Source: xStation5

 

Deutsche Bank (DBK.DE) announced today it has made a strategic, multi-year partnership with Google (GOOGL.US), which will provide access  to its cloud services and drive innovation in technology-based financial products for clients. The deal is part of a 13 billion euro ($14.70 billion)technology investment Deutsche has planned up to 2022 as it restructures to recover from years of losses.

 

Daimler (DAI.DE)  will  recall more than 660,000 vehicles in China produced between February 2013 and June 2017 due to the technical issues. A seal between a high-pressure fuel pump and a low-pressure fuel pipe could break over time, which would cause oil to leak when the engine starts in cold weather. The whole process will start on 18th December 2020.  Also the company recently suspended its partnership with BMW (BMW.DE) to jointly develop the next-generation automated driving technology due to the elevated costs and unfavourable economic circumstances.

 

Wirecard  (WDI.DE) - another executive has been arrested in Germany on suspicion of aggravated fraud, prosecutors said Monday. The suspect, the head of a company subsidiary in Dubai, had returned to Germany to face proceedings.

 

Heidelbergcement (HEI.DE) fell 2% after the company announced  a review of its assets had forced it to book a 3.2 billion euros impairment given the impact the coronavirus pandemic was having on its business.