DE30 plunges to a 3-month low

• European indices slump, DAX trades 2% lower

• DE30 tests upward trendline in the 12,700 pts area

• Adler Group chairman says company liquidation is an option

European stock markets are trading lower on Thursday, following a downbeat Asian session. There is no clear reason behind the drop apart from ever-present recession fears. Blue chips indices from Western Europe trade over 1% lower amid overall deterioration in market moods. German DAX (DE30) drops over 2%. Russian equity indices slump 6-7%.

Source: xStation5

German DAX (DE30) slumped at the beginning of today's European cash session. Index broke below recent local low in 12,800 pts area and is now testing a mid-term upward trendline. A break below would pave the way for a test of early-March lows in the 12,400 pts area. This zone is also marked with 78.6% retracement of the upward move launched at the beginning of November 2020 and is a key support. Next support in-line can be found in 11,750 pts area and is marked with price reactions from pre-pandemic times. Sentiment in the stock markets is very bearish as even upbeat data from China did not manage to support global indices.

Company News

Audi, a brand of Volkswagen (VOW1.DE), announced that it will invest $19.2 million in restarting production at a factory in the Brazilian state of Parana, that was halted in 2020. Plant will have a capacity of 4 thousand vehicles per year.

Grand City Properties (GYC.DE) announced that it will pay a €0.8340 dividend per share, translating to an over 6% dividend yield.

Shares of Adler Group (ADJ.DE) are dropping over 6% after the company's chairman signalled that liquidating a troubled real estate company is one of options on the table.

Shares of Volkswagen (VOW1.DE) are making another attempt to break below the support zone ranging above €180.00 mark. Stock is testing intraday lows from June 23, 2022. In case bulls fail to regain control and downward move deepens, €160 zone will be the next support to watch. Source: xStation5