DE30 attempts to rebound despite weak data

• European indices trade higher
• IFO index below expectations
• Zalando (ZAL.DE) stock fell sharply on weak financial outlook

European stock markets are trading higher despite disappointing economic data from major economies. The Ifo Business Climate indicator for Germany fell to 92.3 in June  from a 3-month high of 93 in the previous month, below market expectations of 92.9 as the threat of gas shortages is of great concern to the German economy. Meanwhile, retail sales in the UK dropped 0.5% over the previous month in May, as soaring prices hurt spending and consumers cut back on grocery shopping. Despite negative readings, some major European  benchmarks are on track to post small weekly gains, boosted by technology, personal & household goods and healthcare sectors.

DE30 again fell below 13,000 pts level following the release of disappointing ifo Business Climate reading. As long as price sits below, another downward impulse towards lows from March 2022 may be launched. On the other hand, if buyers manage to regain control, then nearest resistance to watch lies at 13325 pts and is marked with 23.6% retracement of the downward move started in early January 2022. Source: xStation5

Company news:

Volkswagen AG (VOW3.DE) plans to reduce working hours and lower wages at its Sao Bernardo do Campo factory in Brazil as it grapples with a lack of auto parts and electronic components to assemble its vehicles.

Zalando (ZAL.DE) stock plunged nearly 17.0% after the German online fashion retailer lowered its guidance for the current year, citing deteriorating macro conditions and consumer confidence.

Zalando (ZAL.DE) stock plunged to a more than three-year low and erased all of the pandemic gains. Stock launched today's session with a bearish price gap and currently trades below the lower limit of the descending channel. If current sentiment prevails, major psychological support at €20.00, where 2018 lows are located, may be at risk. Source: xStation5