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European indices drop over 1%
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DE30 tests 14,200-14,250 pts support zone
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Volkswagen to focus on premium brands
European stock markets are trading lower on Wednesday following a mixed trading on Tuesday. Almost all major European blue chips indices trade more than 1% lower. UK FTSE100 (UK100) is an outperformer, dropping "only" 0.5%. Dutch AEX (NED25) is the weakest, dropping around 1.6% at press time. Big event of the day is the release of FOMC minutes in the evening (7:00 pm BST) that may move USD and equities alike.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 dropped below a 14,350 pts swing level and is now testing a lower limit of a trading range in the 14,200-14,250 pts area. This zone is additionally strengthened by the lower limit of a market geometry therefore a break below could hint at a deeper downward move coming. In such a scenario traders should focus on 14,045 and 13,800 pts support zones. In case the FOMC meeting hints at a rapid pace of balance sheet reduction, indices may come under pressure so traders should keep on guard near 7:00 pm BST today. On the other hand, if bulls manage to defend the 14,200-14,250 pts area, a recovery move towards the upper limit of trading range in the 14,500-14,550 pts area could come next.
Company News
Arno Antlitz, Chief Financial Officer of Volkswagen (VOW1.DE), said in an interview with Financial Times that Volkswagen will reduce the offering of combustion engine cars by around 60% and will sell less cars overall by the end of the decade. Carmaker will focus on premium brands that have higher margins.
Analysts' actions
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Fraport (FRA.DE) downgraded to "hold" at Deutsche Bank. Price target set at €49.00
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Fraport (FRA.DE) upgraded to "buy" at Goldman Sach. Price target set at €64.00
Share price of Volkswagen (VOW1.DE) failed to reach a key resistance in €245.00 area and a rebound failed. Stock is pulling back after painting a lower high in a downtrend. A key support to watch should the downward move deepen is marked with previous local high in the €181.00 area. Source: xStation5
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