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Global equity markets recover
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DAX breaks above 9,000 pts
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Beiersdorf (BEI.DE) to launch production of medical grade disinfectants.
It looks like coordinated actions of governments and central banks have achieved one of the goals - moods on the financial markets improved. Gains can be spotted all across the Old Continent today with French, Austrian and Russian equities gaining the most. The German DAX managed to return above 9,000 pts handle. According to the Spiegel report, Germany may be readying up to €500 billion for a rescue fund for businesses.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 recovered greatly over the night. The index surged and tested the upper limit of the Overbalance structure at 9,150 pts at the beginning of the European cash session. Bulls were unable to break above it and a pullback started. Buyers try to keep the index above a psychological 9,000 pts mark. As long as the price holds above it, one cannot rule out a repeated attempt of breaking above the Overbalance structure. Should such a break occur, the next resistance lies at 9,700 pts. On the other hand, a break below 9,000 pts would pave the way towards two near-term supports at 8,800 and 8,600 pts. As always, traders should be wary of increased volatility during the opening of the US cash session (1:30 pm GMT).
DAX members at 9:19 am GMT. Source: Bloomberg
Deutsche Bank (DBK.DE) warned that the impact of the coronavirus may adversely affect lender’s ability to meet financial targets. The company said that protracted downturn in local, regional and global economic conditions has deteriorated outlook significantly. Coronavirus outbreak threatens to stall Bank’s turnaround process.
Deutsche Telekom (DTE.DE) said that its network is coping with an increased demand and the number of phone calls has increased. However, the German telecom ensured that networks are stable and current traffic is not critical yet.
Beiersdorf (BEI.DE), the German personal-care products company, decided to launch a production of medical grade disinfectants amid the coronavirus outbreak. Sanitizers are being manufactured in production plants in Germany and Spain. The company says it will provide 500 tonnes of the product to clinics and hospitals.
Siemens (SIE.DE) is surging today. Joe Kaeser, CEO of the company, said that operations at Chinese production plants almost returned to normal.
Deutsche Telekom (DTE.DE) slumped and broke below the support at €11.10 recently. However, thanks to a strong recovery this week, especially today, the stock is trading above €12 once again. The nearest resistance zone to watch ranges around the €12.70 handle. Source: xStation5
