DE30 awaits decision on European car tariffs

• Decision on European car tariffs expected today

• DE30 painted fresh YTD high yesterday

• Lufthansa (LHA.DE) reached agreement with cabin crew union

Stocks in Europe launched Wednesday’s session lower after Trump hinted at more tariffs in case broad trade deal with China is not reached. The biggest losses could be spotted on Russian, Belgian and Spanish equities at the beginning of a session. Polish and French stocks are the most resilient but also trade below yesterday’s closing prices. Traders should keep in mind that the deadline for the United States to decide on European car tariffs is approaching. The decision is expected to be announced today. Having said that, keeping track of Trump’s Twitter profile may be a good plan for today.

Source: xStation5

DE30 found support at the 50-hour moving average (green line) at the beginning of yesterday’s session. The upward move that followed pushed the index to a fresh YTD. However, the index did not hold there for long and a pullback started in the evening. DE30 once again tested the 50-hour moving average today and once again managed to bounce higher. The rebound occurred at the short-term swing level of 13220 pts. The German index rose at the beginning of today’s cash session in an attempt to cover the downward price gap but failed to do so. The resistance level to watch is unchanged - the upper limit of the Overbalance structure at 13300 pts. The aforementioned 13220 pts handle should serve a near-term support as 50- and 100-hour moving averages can be found there. 

DAX members shortly after the opening of Wednesday’s session. Source: Bloomberg

Trade-sensitive stocks like carmakers or Continental (CON.DE) are trading lower today after Trump hinted that tariffs could be raised in case deal with China is not reached.

According to the Reuters report, at least 3 bids were submitted for a majority stake in Thyssenkrupp’s (TKA.DE) elevator unit. However, only one bid comes from an industry player while the remaining two were submitted by private equity companies.

Deutsche Lufthansa (LHA.DE) issued a statement saying that the German cabin crew union does not plan to hold more strikes during arbitration talks. The carrier and the union have already agreed on increased bonuses for flight attendants based on seasonal employment model. 

Management of the Deutsche Wohnen (DWNI.DE) announced the launch of a buyback programme. The company wants to repurchase up to 25 million shares, or 7% of the capital. The programme will start on November 15 and last until the end of October 2020.

Infineon Technologies (IFX.DE) received an upgrade at the Bankhaus Metzler. The Bank raised the recommendation for the stock to “buy” from “sell”. Price target was set at €23 euro.

Infineon (IFX.DE) jump yesterday after the company's CEO said he sees market prospects improving. The stock tested the upper limit (€19.95) of a short-term trading range from January-March 2019 but failed to break above. Following a lower opening today, the stock attempts to cover the downward gap. Should the moods improve, another test of the aforementioned level may be on the cards today. Source: xStation5