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European indices plunge on taper fears
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DE30 reaches low of the day near 15,615 pts
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Thyssenkrupp sells Carbon Components unit
European stock markets followed into footsteps of their Asian peers and moved lower during Thursday's trading. Taper fears are the primary reason behind sell-off as yesterday's FOMC minutes suggested high likelihood for tapering to begin this year. French CAC (FRA40) is top laggard dropping 2.7% while indices from Italy, UK and Russia also drop over 2%. German DAX (DE30) trades around 1.8% lower.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appGerman DAX (DE30) plunges on taper fears and trades almost 2% lower on the day. The index broke below the 200-hour moving average (purple line) as well as the lower limit of local market geometry at 15,755 pts. So far, low of the day was reached near 15,615 pts. DE30 recovered slightly as bulls managed to push it back above the 38.2% retracement of the upward move launched in mid-July (15,650 pts area). In case rebound continues, 23.6% retracement at15,790 pts is the resistance to watch in near-term. On the other hand, if sell-off resumes and DE30 breaks below the aforementioned 15,650 pts zone, declines may deepen towards 15,530 pts swing area.
Company News
Linde (LIN.DE) and Infineon Technologies (IFX.DE) reached a long-term supply agreement. Under the terms of agreement, Linde will supply Infineon with industrial gases and help set up an on-site production of green hydrogen for use in the semiconductor manufacturing process. Facility is expected to start operations next year.
Thyssenkrupp (TKA.DE) announced that it will sell its Carbon Components unit to Action Composites, an automotive composites company. Financial details of the transaction were not disclosed. Thyssenkrupp said that the sale is part of the restructuring process.
Roland Busch, CEO of Siemens (SIE.DE), said that the company has finished the reorganization process and completed planned spin-offs. The company plans to keep a less diverse portfolio going forward and focus on smaller and higher margin business.
European equities plunged today on taper fears with industrial and tech companies being hit the hardest. Infineon is no exception. Semiconductor manufacturer is one of the worst performing DAX members today and trades almost 4% lower. Stock is attempting to break below the 200-session moving average. If it succeeds, the next major support to watch can be found at €30.50. Source: xStation5
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