• BoE leaves monetary policy unchanged
• Eurozone CPI falls for 1st time in over 4 years
• Delivery Hero (DHER.DE) will acquire Glovo's operations in Latin America
• Eurozone CPI falls for 1st time in over 4 years
• Delivery Hero (DHER.DE) will acquire Glovo's operations in Latin America
European indices are trading lower today as global sentiment was hit after US policymakers projected a slower pace of recovery from the coronavirus pandemic and signaled that rates would stay near zero through 2023. Meanwhile, the Bank of Japan left monetary policy unchanged and upgraded its view on the economy but warned it remained in a severe situation due to the pandemic. Also Bank of England left the key interest rate and its asset purchases unchanged as expected. The Committee does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably. On the coronavirus front, Spain reported more 11,193 new infections, bringing the country’s total to 314,360. There are expectations that Spain will announce targeted lockdowns in places where the virus is spreading rapidly, and renewed restrictions of movement on Friday. France continues to close down schools as a second wave of infections hits the country.
The Eurozone consumer prices dropped 0.2 percent from a year earlier in August 2020, the first decline since May 2016. Construction output in the Eurozone shrank 3.8 percent year-on-year in July of 2020, following a downwardly revised 4.8 percent fall in June, and marking the 6th straight month of contraction in the construction sector due to the coronavirus pandemic.
DE30 - yesterday index bounced off the key resistance at 13300 pts and moved lower. However, during today's session, we can observe some bulls activity, which managed to recover some of the recent losses. If buyers will manage to break above the aforementioned level, then the next resistance at 13,570 pts could be tested. On the other hand if sellers manage to take control on the market, the downward move towards upward trendline is possible. Source:xStation5
DAX members at 13:08 pm BST. Source: BloombergDelivery Hero (DHER.DE) has announced it's buying the Latin America operations of Glovo, a Spanish on-demand delivery app. The German company said today that it's paying up to €230 million to take over eight markets, including a €60 million performance-based earn-out.
Delivery Hero (DHER.DE) stock surged during today’s session and is testing the local resistance at €91.00. If buyers manage to break above it, an upward impulse towards €95.00 could be launched. On the other hand, once sellers regain control, the support at €87.25 may be at risk. Source: xStation5
