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Small declines on European stock exchanges
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DE30 pulls back below 12,900 pts
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Dialog Semiconductor expects higher Q3 revenue
European stock markets are trading slightly lower on Wednesday following Trump's decision to end stimulus talks and postpone negotiations until after elections. Big part of the drop was erased during the overnight trading. FOMC Minutes release is a key macro event of the day (7:00 pm BST).
German industrial production data for August was released at 7:00 am BST. Production dropped 0.2% MoM against expected increase of 1.5% MoM. In year-over-year terms production was 9.6% lower against expected -8.7%. Reading highlighted some weakness that may cast shadow on Q3 economic growth.
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Source: xStation5
DE30 plunged when Trump announced the end of stimulus talks. However, index recovered overnight and tested the resistance zone at 12,900 pts in the morning. Bulls failed to break above and a pin bar pattern was painted in a key area. We can observe that the index is pulling back currently and the first near-term support to watch can be found at recent lows at 12,785 pts (38.2% retracement).
Company News
Dialog Semiconductor (DLG.DE) is one of the best performing German stocks today. The company said that it expects to exceed previously provided revenue guidance for the Q3 2020. Dialog Semiconductor expects $386 million revenue in Q3 2020, up from the previous $340-380 million range. Q3 earnings report will be released on November 5.
James Rivet, investor relations chief at Deutsche Bank (DBK.DE), said that the bank's trading department had a good quarter during a recent analyst call. Rivet said that Q3 trading revenue growth is likely to be in line or slightly higher than average 12% forecasted for Wall Street banks.
TUI (TUI.DE) announced that Chief Financial Officer Birgit Conix will not extend her contract and will leave the company by the end of the year. Executive Board member Sebastian Ebel will take over her duties starting from January 2021. Stock declines 5% today.
DAX members at 10:21 am BST. Source: Bloomberg
