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European indices recover from earlier losses
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DE30 tries to climb back above 14,000 pts
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Rheinmtall shares drop after Germany halts Puma IFV purchases
European stock market indices are trading lower but a bulk of earlier losses has been already recovered. Unexpected decision from BoJ to widen yield target band triggered sell-off on equity markets and spike on JPY market. Major European indices now trade 0.3-0.5% lower after dropping over 1% earlier in the day.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appGerman DAX futures (DE30) dipped earlier today following the BoJ announcement. DE30 broke below 14,000 pts support zone and reached a daily low a touch below 13,800 pts mark. However, declines were halted by the 50-session moving average (green line) and a recovery move was launched afterwards. With the majority of daily losses recovered, daily candlestick took the form of doji. Should the index finish today's trading at current levels or higher, a strong bullish candlestick pattern may appear. Recent highs in the 14,600 pts area remain the first resistance to watch in case a strong upward impulse is launched.
Company News
Shares of Rheinmetall (RHM.DE) plunged 7% yesterday after German Defence Ministry said that it will halt purchases of Puma infantry fighting vehicles manufactured by the company as they turned out to be unreliable. German officials will now wait for Rheinmetall to fix issues. Stock deepens drop today by another 5%.
Siemens Energy (ENR.DE) announced that it now owns 92.7% stake in Siemens Gamesa (SGRE.ES), Spanish wind turbine company, following a successful tender offer. Such a stake will allow Siemens Energy to delist Gamesa shares.
Analysts' actions
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Aroundtown (AT1.DE) was downgraded to Neutral at Berenberg. Price target was set at €3.00
Rheinmetall (RHM.DE) is plunging for the second day in a row after German authorities halt purchases of Puma IFV. Stock dropped below 200-session moving average and 50% retracement of the downward move launched in late-June 2022. Share price is now testing support zone marked with 38.2% retracement (€175 area). Source: xStation5
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