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European markets recover after lower opening
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DE30 tests 50-hour moving average
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Deutsche Wohnen and Salzgitter reported earnings
European markets started the day lower but managed to recover in the first hours of the cash trading. There are no market moving macro releases scheduled for today so trading may be dominated by headline news. University of Michigan sentiment data for November at 3:00 pm BST could provide some additional volatility but markets expect that the reading will be more or less unchanged compared to the previous month.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 started today's trading lower but managed to climb above yesterday's close in the first two hours of the cash session. The German index is facing a resistance at the 50-hour moving average (green line). Note that this moving average has provided support for the index twice during this week's bull run (orange circles) and breaking above it could hint that an attack on recent peak at around 13,250 pts is looming. Overnight low at 12,950 pts can be seen as the first near-term support to watch should we see a pullback. More important support can be found in the 12,800 pts area, where 23.6% retracement of recent upward move as well as the lower limit of the Overbalance structure can be found.
DAX members at 10:01 am GMT. Source: Bloomberg
Company News
Deutsche Wohnen (DWNI.DE) reported results for the first nine months of the year today. The company met expectations with funds from operation per share coming in at €1.21. This marked a minor increase from €1.20 in January-September 2019. Net asset value per share increased by around 1.9% YoY to €47.89. Deutsche Wohnen said that it still expects full-year funds from operations to be similar to previous year's level at €540 million. Company also expects valuation gains of around 6% this year.
Salzgitter (SZG.DE) had a net loss of €98.3 million in Q3 2020, an improvement from a loss of €126.2 million in Q3 2019. EBIT loss of €84.7 million was also slightly smaller than loss of €87.6 million in the previous year. Sales dropped from €2.11 billion in Q3 2019 to €1.63 billion in Q3 2020. Company expects full-year pre-tax loss to be more or less in line with last year's loss of €253.3 million.
Salzgitter (SZG.DE) is trading lower today. Share price remains in between limits of a recent trading range - support at €13.25 and resistance at €14.90. Breaking below the €13.25 would shift markets' attention to the upward trendline at €12. Source: xStation5
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