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European stock markets trade lower
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DE30 tries to defend 12,800 pts
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Puma drops after Kering announces share sale
European markets are trading lower on Tuesday. Declines are quite minor and mostly limited to Western Europe. Trump's health remains one of key market themes even after he was discharged from the hospital. Apart from that, traders will tune in to speeches from Powell (3:30 pm BST) and Lagarde (2:00 pm BST).
Germany factory orders data for August was released at 7:00 am BST and turned out to be a positive surprise. Factory orders increased 4.5% MoM while market expected an increase of 2.8% MoM. On year-over-year basis orders were 2.2% lower (expected -3.8% YoY).
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Source: xStation5
DE30 made a vague break above the resistance zone ranging between 12,800 pts and 50% retracement of the early-August upward move. The index pullback below this zone during today's European cash trading but bulls are trying to halt declines. Finishing the day below 12,800 pts could create a bearish bias. Near-term support can be found at 61.8% retracement at 12,680 pts. In case buyers manage to defend the price zone at 12,800 pts, upward move towards a recent peak at 12,900 pts could be on the cards.
DAX members at 10:02 am BST. Source: Bloomberg
Company News
K+S (SDF.DE) has agreed to sell Morton Salt unit for $3.2 billion to Kissner Group. The German potash miner will use proceeds from the sale to pay down debt. Deal is expected to close in summer 2021.
Kering, French luxury goods group, announced that it will sell 8.8 million shares of Puma (PUM.DE), or 5.9% stake. Shares will be offered to qualified investors through an accelerated bookbuilding. Puma is trading lower on the back of this news today.
Christian Sewing, CEO of Deutsche Bank (DBK.DE), said that the German lender is focused on implementing a turnaround plan. However, the executive did not rule out a potential acquisition next year under the condition that Deutsche Bank's share price recovers.
Deutsche Bank (DBK.DE) broke above the 200-hour moving average today. The stock is testing resistance zone at €7.655, where downward trendline can also be found. Near-term support in case of a pullback lies at €7.23. Source: xStation5
