DE30: Infineon moves higher after new iPhone models were unveiled

Summary:

• Tria threatens to step down as Five Star wants to secure at least 10 billion euros for basic income

• DAX (DE30 on xStation5) tests the 33-period moving average in the vicinity of the 12070 pts handle

• Infineon (IFX.DE) moves higher after Apple unveiled its new products yesterday

Yesterday’s session on Wall Street was mixed. S&P 500 and Dow Jones managed to push slightly higher while Nasdaq closed almost a quarter of percentage point lower. Asian investors were much more optimistic as the Japanese Nikkei (JAP225) added 0.97% and most of the Chinese stock benchmarks are trading significantly higher. On the other hand, the Australian S&P/ASX 200 (AUS200) declined 0.76% on the back of AUD strengthening.

Most of the major European stock benchmarks opened in the vicinity of yesterday’s closing prices. However, the Italian FTSE MIB (ITA40) opened moderately lower, lagging behind other European peers. On the other hand, the Polish WIG20 (W20) was outperforming other stock indices from the region severely. Miners led the gains while utilities and refiners took the biggest step back in the first minutes of trade.

DE30 continues to move higher after breaking above the support zone. The German benchmark is testing the 33-period moving average (green line on the chart above) at press time. Do notice that this technical hurdle lies just a notch end-June’s swing level (orange circle). Source: xStation5

The underperformance of the Italian stocks at the beginning of the European trading session can result from La Stampa report. Daily newspaper claims that the Italian Finance Minister, Giovanni Tria, threatened to step down on the back of pressures exerted on him by the Five Star Movement. Tria is said to be constantly pressured by the governing coalition member party to find funding for the basic income election promise in the budget. According to the Ansa news agency the Five Star Movement wants to secure at least 10 billion euros for the idea in the next year’s budget. As Tria tries to bring heavily indebted country back on track such an expenditure would be a major setback. Another newspaper, La Repubblica, reported that Tria even told Prime Minister Conte that he is ready to leave the post in case he is the problem. However, after initial underperformance Italian FTSE MIB moved higher along with other European stock benchmarks.

Major European stock indices after the first hour of trade:

• DAX (DE30): +0.37%

• FTSE 100 (UK100): +0.01%

• CAC 40 (FRA40): +0.38%

• IBEX (SPA35): +0.61%

• FTSE MIB (ITA40): +0.29%

Infineon (IFX.DE) can be found among DAX leaders today what can be result of Apple unveiling new iPhone models yesterday. Source: xStation5

Company News

Infineon (IFX.DE) can draw some attention today. Apple, the American smartphone manufacturer, unveiled new models of iPhones, iPads and Apple Watches yesterday. Among new models of the US company bestseller iPhone one can find models with a bigger screen as well as some cheaper versions. As Infineon is one of the Apple’s major semiconductor suppliers the reception of new Apple products may greatly impact the company’s valuation. Despite the fact that Apple finished yesterday’s trading lower, Infineon is moving higher so far.

Infineon (IFX.US) has been underperforming lately on the back of weaker forecasts for the semiconductor industry. However, the stock is moving higher today trying to at least partially erase steep drop seen yesterday. Source: xStation5