DE30 plunges after trading resumes

• German stock futures drop after trading resumes

• DE30 tests lower limit of local market geometry

• German companies join Facebook ad boycott

European stock market system Eurex experienced a technical issue today. As a result many futures markets were not trading for around 3 hours. Situation also affected trading on cash markets. Issues were resolved already and markets are functioning as normal.

Most of the major stock market indices from the Western Europe trade lower. Dutch AEX is trading more or less flat. There are few major releases worth tracking today and each of them may have impact on stocks:

• 1:15 pm BST - US, ADP employment report for June

• 3:00 pm BST - US, ISM manufacturing for June

• 7:00 pm BST - FOMC minutes

Source: xStation5

DE30 made a pullback during the Asian session. Downward move was halted at the 200-hour moving average (purple line) and index began to recover. However, technical issues caused the market to close for around 3 hours. Index relaunched trading at 10:30 am BST with a 50 points bullish price gap before taking a nosedive. DE30 currently trades near the lower limit of local market geometry (yellow box, 12,250 pts area). Defending this area and returning above the short-term price zone at 12,300 pts later on could be considered bullish but market sentiment is likely to be dependent on US data releases in the afternoon. Should downward movement continue, the support zone at 12,200 pts could be at risk. 

DAX members at 10:47 am BST. Source: Bloomberg

Volkswagen (VOW3.DE), Adidas (ADS.DE) and Puma (PUM.DE) announced yesterday that they are suspending ad spending on Facebook. Facebook has seen a departure of many advertisers recently as the social media company is criticized for failing to stop hate speech on its platform.

Airbus (AIR.DE) announced an extensive restructuring plan yesterday. European planemaker plans to cut up to 15,000 jobs over the next year. Company said that it did not expect air traffic to return to pre-virus levels until 2023 or even 2025. Cuts amount to around 10% of Airbus' global workforce and are the largest on record for the company.

Administrator of Wirecard (WDI.DE) said it has received strong interest in the assets of a company and will mandate banks to sell parts of the company shortly. Administrator aims to stabilize business operations of Wirecard's subsidiaries and sell them in order to satisfy creditors' claims.