- European indices trade slightly higher
- DE30 bounces off the 15,650 pts
- Infineon drops as China plans to widen ban on use of iPhones
European stock market indices are trading slightly higher today. German DAX is trading 0.2% higher, UK FTSE 100 and French CAC40 gain 0.4% while Dutch AEX drops 0.2%.
German industrial production data for July was released this morning at 7:00 am BST. Report turned out to be a negative surprise with production dropping 0.8% MoM while the market expected a drop of 0.5% MoM. The biggest drop was seen in capital goods production (-2.9% MoM), followed by consumer goods production (-1.0% MoM). On the other hand, construction production increased the most (+2.6% MoM), followed by energy production (-2.2% MoM). Reading for the previous month (June) was revised higher from -1.5 to -1.4% MoM.
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Source: xStation5
Taking a look at DAX futures (DE30) at H4 chart, we can see that the index dropped to mid-term support zone ranging above 15,650 pts mark but bulls managed to halt decline there. An attempt to launch a recovery move can be spotted today with DE30 erasing overnight losses and trading 0.2% higher at press time. Should we see the ongoing upward move extend further, a test of the 15,850 pts resistance zone may be a matter on time. More important resistance zone, which limited previous short-term upward impulse, can be found 200 points higher in the 16,050 pts area.
Company News
SAP (SAP.DE) agreed to purchase LeanIX, an enterprise architecture management software company. Financial terms of the deal were not disclosed by SAP, earlier media reports hinted that LeanIX may be valued at slightly below €1.2 billion. Deal is expected to close in the final quarter of 2023, following regulatory approvals.
Airbus (AIR.DE) delivered 52 aircraft in August and booked 117 gross orders during the month. Year-to-date deliveries now stand at 433 aircraft. Company would need to up the pace of deliveries in the final 4 months of the year if it wants to meet the full-year target of 720 deliveries.
Infineon Technologies (IFX.DE) is dropping 1.6% today and is one of the worst performing DAX members. Infineon, as well as other European Apple suppliers, is trading under pressure today following news from China. Chinese authorities plan to extend the ban on use of iPhones in government-backed agencies and state-owned companies.
SAP (SAP.DE) is trading higher today, following news of LeanIX acquisition. Stock is making another attempt at breaking above the €130 resistance zone, marked with YTD highs as well as local peaks from 2020 and 2021. However, all-time highs from 2020 are still some around 10% away in the €142 area. Source: xStation5
