- Europe's indices extend bullish rally at start of week
- HelloFresh under pressure over accusations of exploiting minors
- News from China drives fashion, automotive and industrial sectors
Monday's session on the European stock market brings gains for most stock indices. Germany's DAX is currently adding 0.10%, France's CAC40 is up 0.53% over the same period, and Britain's FTSE100 is adding 0.56%. Investors' attention focused on corporate news today, in the absence of major macro data releases.
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Open account Try demo Download mobile app Download mobile appSentiment in the European stock market is relatively good today. We see a clear rebound primarily in the stocks of companies included in sectors that are clearly linked to China (fashion, industrials and automotive). Source: xStation5
Volatility observed on individual German companies at the moment. Source: Bloomberg Finance L.P.
DE40 (D1 interval)
The DAX has broken out to new historic highs. From a technical point of view, the DE40 seems to be maintaining its overall uptrend, as long as the 100-day curve (purple curve) and the 50-day curve (blue curve) are not broken on high volume, so it is worth looking now to see if the index manages to stay permanently above these zones (technically important support points). If such a scenario were to take place, it could mean an increase in the chances of a general continuation of the upward trend. However, it is worth noting the indications of the RSI indicator, which has gone above the 70 barrier (a textbook overbought level).
Source: xStation5
News
European companies with exposure to China rose significantly in today's session after the country's top leaders promised to support China's economy through a “moderately loose” monetary policy and ‘more proactive’ fiscal policy. The market sees opportunities to extend the stimulus cycle of the struggling eastern economy.
- Mining companies: BHP +3.44%, Rio Tinto +3.29%, Anglo American +2.80%.
- Fashion companies: LVMH +1.9%, L'Oreal +1.2%, Kering +2.7%, Richemont +2.0%, Hermes +0.97%.
- Automobile manufacturers: Mercedes +1.8%, BMW +1.6%, Volkswagen +1.2% and Porsche +1.0%.
HelloFresh SE (HFG.DE) shares are losing 8% today, the most since August of this year, after ABC News reported that the company is under investigation by the U.S. Department of Labor over allegations that teenage migrant workers were used at one of its cooking and packaging plants.
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