-
European equities try to recover from yesterday's drop
-
DE30 tests 200-hour moving average
-
Commerzbank drops EY as auditor after Wirecard collapse
European stock indices launched today's trading with a small bearish price gap. However, a strong upward move at the start of the cash session brought most of the indices above yesterday's closing prices. Traders can expect a bit muted trading ahead of a key NFP report scheduled for release at 1:30 pm BST.
Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appDE30 slumped yesterday as the tech crash triggered a broad sell-off on Wall Street and dragged indices from other regions lower as well. German stock market index broke below the lower limit of the market geometry (yellow box) and smashed through supports at 13,300 and 13,200 pts later on. Declines were halted at the support zone ranging around 12,935 pts and recovery began. The key resistance to watch now is marked with a 200-hour moving average (purple line). Should the index clear this hurdle and a 38.2% retracement of yesterday's drop at 13,120 pts, gains could be extended towards the zone at 13,200 pts that is also marked with a 50-hour moving average (green line). Keep in mind that NFP report release at 1:30 pm BST is going to be watched closely following the disappointing ADP release on Wednesday and elevated volatility around the release is expected.
Company News
Commerzbank (CBK.DE) decided to resign from services of EY as lender's auditor. Decision was made by the Supervisory Board and will take effect in 2022. EY has drawn a lot of criticism as it was auditor of Wirecard for a long time and failed to spot irregularities at the German payments company.
Vonovia (VNA.DE), the German real estate company, decided to raise additional capital through a new share offering. Decision was made by the management board and authorized by the supervisory board. Company aims for proceeds of around €1 billion. Shares will be offered to institutional investors only and are expected to start trading on the Deutsche Boerse on September 11.
Continental (CON.DE) announced earlier this week that it plans deeper job cuts. The German automotive parts manufacturer plans to cut up to 13% of its global workforce in order to save at least €1 billion annually. Global job cuts could amount up to 30,000 jobs with 13,000 German jobs being either eliminated or moved to other areas. Majority of these cuts are to be implemented by 2025.
DAX members at 10:16 am BST. Source: Bloomberg
