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European markets decline on Tuesday
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DE30 pulls back below zone at 12,800 pts
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Uber express interest in ride-hailing venture of BMW and Daimler
European stock markets are showing some weakness on Tuesday. Weakness could reflect uncertainty surrounding a major risk event scheduled for 2:00 am BST - the first US presidential debate. Trump and Biden will face each other in a 90 minute debate that may tilt poll results and shape early expectations on who may win November's ballot. Traders should keep this in mind while trading risky assets, like stocks, today and tomorrow.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 made an impressive 5% rally off the Friday's low and managed to smash through the upper limit of the Overbalance structure (yellow box). However, advance was halted this morning near the 12,900 pts handle and a strong downward move followed. The German index is trying to climb back above the major price zone ranging between 12,800 pts handle and the 50% retracement of the upward move started at the turn of July and August. There are 2 important releases scheduled for today - German CPI (1:00 pm BST) and CB consumer confidence (3:00 pm BST). However, neither is likely to trigger major moves on equities as investors seem to be waiting for the first US presidential debate tonight (2:00 am BST). Traders may expect elevated volatility in the overnight futures trade and given limited liquidity, moves can be significant. 61.8% retracement at 12,665 pts can be seen as the first big support while the 12,900 pts area could come into focus once again should we see a break back above 12,800 pts.
DAX members at 10:15 am BST. Source: Bloomberg
Company News
According to a Bloomberg report, Uber Technologies is considering placing a bid for Free Now, the joint ride-hailing venture of BMW (BMW.DE) and Daimler (DAI.DE). Uber expressed interest after Free Now struggled to find new investors amid coronavirus pandemic. Purchase would boost Uber's presence in Europe and Latin America. There is no news on the possible purchase price but Daimler valued its half of the joint venture at around $720 million at the end of Q2 2020.
Reuters reports that US pension funds asued Allianz (ALV.DE) for failing to guard their investments during the coronavirus pandemic. A group of pension funds representing US truckers, teachers and subway workers who filed suits has reportedly lost around $4 billion during early-year sell-off.
Beiersdorf (BEI.DE) received an upgrade at Berenberg Bank. The Bank raised recommendation for the stock from "sell" to "hold". Price target was set at €94. Berenberg said that following the pandemic sell-off, Beiersdorf is now fairly valued.
BMW (BMW.DE) resumed upward move after testing 200-session moving average (purple line). As one can see, this moving average has been often respected by share price (orange circles) and should be viewed as the near-term support to watch. The near-term resistance and first potential target for bulls is marked with a zone at €65. Source: xStation5
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