Summary:
- European stocks trade lower this morning
- DE30 may be drawing a possible head and shoulders pattern
- Daimler (DAI.DE) to lay off a sizeable number of employees, Henkel (HEN3.DE) rises following Q3 earnings
The beginning of Thursday’s trading in Europe has been rather bearish after modestly successful trading in the United States yesterday as well as the mixed day across Asian markets. Among reasons for this underperformance we may single out revelations regarding a possible snag faced by the US and China during trade talks as the latter is reportedly unwilling to put specific numbers of US agricultural purchases into trade deal text. Moreover, we were offered disappointing numbers from China signalling that the ongoing slowdown there is more than the trade war per se and it has a lot to do with sluggish domestic demand in the world’s second largest economy.
Looking at the H4 chart of the German DE30 one might perceive a possible head and shoulders pattern being drawn in recent hours. Once the price breaks below 13140 points one may expect an extended pullback at least toward the 23.6% retracement of the latest price rally. Subsequent retracements could be viewed as further support levels as well. On the other hand, should the price break above the head’ level, it would negate the scenario described above. Source: xStation5
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A majority of stocks within the DE30 is trading lower this morning. Source: Bloomberg
Daimler (DAI.DE) plans to save up to 1 billion EUR by the end of 2022 by cutting jobs in its Mercedes-Benz cars division. Moreover, the company intends to add more than 20 hybrid, electric cards until 2022.
Henkel (HEN3.DE) reported Q3 adjusted EBIT of 850 million EUR, falling short of the median estimate of 857 million EUR. Revenue also missed expectations showing 5.08 billion EUR vs. 5.11 billion EUR expected. The company confirmed its 2019 fiscal year outlook.
