DE30: European stocks sink as Covid-19 cases pick-up

• Equities slide on second Covid-19 wave concerns

• DE30 tried to climb back above 11,800 pts after early plunge

• Deutsche Boerse (DB1.DE) to list crypto ETP later this month

European stock markets plunged at the open of the cash session on Monday. Concerns over the second wave of Covid-19 infections play a major role as data shows daily cases continue to pick up. While some of the losses have been recouped since, DAX still trades around 200 points below previous close. There are not many important events scheduled for today. One event of note is a video call between the UK Prime Minister, Boris Johnson, and European Commission chief, Ursula von der Leyen. Video call is expected to be held at 1:30 pm BST.

Source: xStation5

DE30 painted a new lower low in the ongoing downward move. The German index broke below the support at 11,800 pts and the lower limit of the Overbalance structure ahead of the cash session open. However, after a brief struggle near the 61.8% retracement of the February-March sell-off, the index started to recover. The aforementioned price zone at 11,800 pts was tested as a resistance later on but so far the index did not manage to overcome it. Breaking above and staying there could hint at a resumption of the upward move. In such a scenario, traders should look towards the recent peak at 12,150 pts as the first potential resistance.

DAX members at 9:52 am BST. Source: Bloomberg

Stuart Lewis, member of Supervisory Board of the Deutsche Bank (DBK.DE), expressed confidence in the strong capital position of the Bank. He said that he does not expect Deutsche Bank to need to raise additional capital in the aftermath of a coronavirus-related economic downturn.

Deutsche Telekom (DTE.DE) looks to be the most resilient DAX members amid the ongoing sell-off. The stock received an upgrade at Berenberg. Recommendation for Deutsche Telekom was boosted from "neutral" to "buy". Price target was increased to €17.70 from €12.

An exchange-traded product (ETP) tracking Bitcoin performance will be listed on the Xetra stock exchange operated by the Deutsche Boerse (DB1.DE). Product is promoted by ETC Group and will be backed with cryptocurrency holdings. Digital currencies will be stored in a cold wallet, watched over by BitGo - digital asset trust company. Listing is expected later this month.

According to a Reuters report, Volkswagen (VOW3.DE) will start sending workers to its factory in Mexico in order to prepare and train them ahead of gradual restart of operations.

Deutsche Boerse (DB1.DE) is trading lower today. Stock launched today's session near the price zone ranging above the 78.6% of February-March sell-off. The stock recovered from early weakness and began to move higher. The ATH area near the €155 mark is the near-term resistance to watch. Source: xStation5