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European indices slump, DAX trades 2% lower
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DE30 tests upward trendline in the 12,700 pts area
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Adler Group chairman says company liquidation is an option
European stock markets are trading lower on Thursday, following a downbeat Asian session. There is no clear reason behind the drop apart from ever-present recession fears. Blue chips indices from Western Europe trade over 1% lower amid overall deterioration in market moods. German DAX (DE30) drops over 2%. Russian equity indices slump 6-7%.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appGerman DAX (DE30) slumped at the beginning of today's European cash session. Index broke below recent local low in 12,800 pts area and is now testing a mid-term upward trendline. A break below would pave the way for a test of early-March lows in the 12,400 pts area. This zone is also marked with 78.6% retracement of the upward move launched at the beginning of November 2020 and is a key support. Next support in-line can be found in 11,750 pts area and is marked with price reactions from pre-pandemic times. Sentiment in the stock markets is very bearish as even upbeat data from China did not manage to support global indices.
Company News
Audi, a brand of Volkswagen (VOW1.DE), announced that it will invest $19.2 million in restarting production at a factory in the Brazilian state of Parana, that was halted in 2020. Plant will have a capacity of 4 thousand vehicles per year.
Grand City Properties (GYC.DE) announced that it will pay a €0.8340 dividend per share, translating to an over 6% dividend yield.
Shares of Adler Group (ADJ.DE) are dropping over 6% after the company's chairman signalled that liquidating a troubled real estate company is one of options on the table.
Shares of Volkswagen (VOW1.DE) are making another attempt to break below the support zone ranging above €180.00 mark. Stock is testing intraday lows from June 23, 2022. In case bulls fail to regain control and downward move deepens, €160 zone will be the next support to watch. Source: xStation5
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