DE30: China's risks drag markets lower

• European stock markets trade lower

• DE30 drops below lower limit of Overbalance structure

• Infineon launched new chip production facility in Austria

European stock markets are trading lower at the beginning of a new week. Situation in the Chinese real estate sector remains the main source of concern and potential spillover effects create a big risk for international markets. Major indices from Europe trade 1-2% lower today and current situation on the US futures markets point to a similarly poor opening of the cash session on Wall Street.

Source: xStation5

Stock markets in Europe are plunging today. Concerns over possible corporate defaults in the Chinese real estate sector are the main triggers behind a sell-off today. German DAX (DE30) is no exception with index trading 2% lower at press time. Taking a look at DE30 at a daily interval (D1), we can see that the index is experiencing one of the worst one-day sell-offs in weeks. The index finished last week's trading near 100-session moving average (red line) but selling resumed at the beginning of a new week. Given that the index dropped below the lower limit of the market geometry near 15,200 pts. In case DE30 finishes the day below this area, technical outlook will become more bearish. In such a scenario, 23.6% retracement and 200-session moving average (purple line) in the 14,900 pts area will serve as the next support to watch.

Company News

Today is the first day when the German DAX index trades in a new, 40-member format. Among companies that have made its way into the index one can find:

• Airbus (AIR.DE)

• Porsche Automobil Holding (PAH3.DE)

• Puma (PUM.DE)

• HelloFresh (HFG.DE)

• Zalando (ZAL.DE)

• Siemens Healthineers (SHL.DE)

• Sartorius (SRT.DE)

• Qiagen (QGEN.US)

• Brenntag (BNR.DE)

• Symrise (SY1.DE)

Vonovia (VNA.DE) and Deutsche Wohnen (DWNI.DE) agreed to sell 14,750 apartments in Berlin as part of a housing pact for Berlin. Apartments were sold for €2.46 billion, which companies see as a fair price.

Infineon (IFX.DE) launched a new chip production facility in Austria on Friday. A €1.6 billion production facility was opened ahead of schedule and Infineon expects it to add up to €2 billion in annual revenue.

Airbus (AIR.DE) has reached a deal with AirAsia to modify the order of the Malaysian airline. A new deal does not include cancellation of any of over 400 jets AirAsia has ordered from Airbus but includes a new delivery schedule as well as price cuts.

Infineon (IFX.DE) is taking a hit today amid broad deterioration in market moods. Stock launched today's trading with a large bearish price gap and is currently testing the €36.00 swing area. In case we see a break below this hurdle, downward move may deepen towards the lower limit of the Overbalance structure in the €34.92 area. Source: xStation5