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European stocks recover from morning drop
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DE30 bounces off the support at 11,450 pts
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Fraport CEO sees 2020 passenger volumes at less than 30% of 2019 levels
European markets launched today's trading lower but managed to recover. Most of the blue chips indices from the Old Continent trade either flat or slightly higher on the day.
Germany announced new coronavirus restrictions yesterday. Bars, restaurants as well as gyms will stay closed for a month, starting this Friday. Hotels will be banned from hosting foreign tourists during that time and public gatherings will be limited to 10 people. Peter Altmaier, German economy minister, and Olaf Scholz, German finance minister, detailed how the government plans to help impacted companies. Companies that employ over 50 people will receive 70% of revenue from the same period in 2019 while companies that employ less than 50 people will receive 75% compensation.
DE30 plunged towards 11,350 pts overnight. However, a strong upward move was launched ahead of the European cash session open and the index began to recover. Daily candlestick took the form of a bullish pinbar following recovery and if the index finishes today's trading at or above yesterday's close, bullish bias may surface. Closest resistance level to watch can be found at 12,100 pts. Source: xStation5
Company News
Elmar Degenhart, CEO of Continental (CON.DE), announced that he will resign on the back of health reasons. However, rumours that Continental may be aiming to replace Degenhart were spreading for some time already. Degenhart drew criticism for poor communication of Aachen plant closure as well as some disagreements with employees.
Stefen Schulte, CEO of Fraport (FRA.DE), said that passenger volumes at Frankfurt Airport in 2020 will be less than 30% of 2019 volumes. This means less than 20 million passengers will fly from Frankfurt this year. CEO said that a return to 2019 levels at around 70 million passengers per year is not expected before 2025. Company plans to reduce 4000 jobs by early 2024.
DAX members at 9:46 am GMT. Source: Bloomberg
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