- European indices trade mostly lower
- German inflation at new record highs
- Volkswagen (VOW3.DE) stock plunged on downbeat earnings
Major European indices are facing selling pressure on Friday, with DAX losing nearly 0.50%, led by a fall in miners, technology and real estate shares. Quarterly results from big US tech companies including Apple, Amazon and Intel disappointed while lower commodity prices on the back of new lockdowns in China also weighed on investors' mood. Also inflation data from countries including Germany, France and Italy came in above market expectations. In Germany's consumer price inflation jumped to 10.4% YoY in October, a new all-time high and above analysts’ estimates of 10.1%. On the flip side, fresh GDP figures from Germany showed Europe's largest economy continued to avoid a recession in Q3.

DE30 continues to hover above support at 12950 pts, which coincides with 38.2% Fibonacci retracement of the downward wave launched in June 2022 and the downward trendline. As long as the index sits above this level, upward move may accelerate towards resistance at 13300 pts. On the other hand, if sellers manage to regain control, support at 12520 pts may be at risk. Source: xStation5
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DAX sector performance. Source: Bloomberg
Company news:
Volkswagen (VOW3.DE) stock plunged over 3.5% after the company reported behind pre-pandemic levels third-quarter earnings. The carmaker cut its expectations for deliveries this year to be on par with 2021, down from a previously-forecast 5%-10% rise, but uphold earnings forecast of hitting the upper end of a 7%-8.5% margin by cutting fixed costs.
Volkswagen (VOW3.DE) stock resumed downward move as sellers failed to break above local resistance at €151.60 which is marked with upper limit of the 1:1 structure. Downward move accelerated today following disappointing quarterly results. If current sentiment prevails downward move may accelerate towards recent lows at €120.70. Source: xStation5
Porsche (PAH3.DE) stock plunged nearly 3.0% despite the luxury carmaker reporting a 40% leap in operating profit to more than 5 billion euros in its first results since its stock market listing in late September.
Danone (BN.FR) shares were up more than 2.0% after the company raised its 2022 revenue growth forecast.
DAX biggest market movers. Source: Bloomberg
The most active stocks listed on the DAX index (DE30). Source: Bloomberg
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