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European equities jump higher
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DE30 returns to the 10,000 pts area
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Fitch downgrades Deutsche Bank (DBK.DE) and Commerzbank (CBK.DE)
European equity indices managed to recover from declines yesterday and finished trading higher. Bulls remain in control today, at least in the first half of the European session. Belgian and German equities are top movers while stocks from France and Switzerland gain the least. German unemployment data released earlier in the day showed 1k increase in unemployment, much lower than expected.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 dropped towards the 9,410 pts area yesterday, where low from March 25 can be found. However, the index bounced off the area and upheld the trading range. Subsequent upward move brought the German index to the 10,000 pts mark. The index struggles to make a more decisive break above the zone overarching this level and recent price action even hints that a correction may be looming. According to the Overbalance methodology, potential range for the correction is 9,860 pts. In case it fails to fend off the bears, the pullback may deepen towards 9,700 pts. On the other hand, in case buyers manage to defend 10,000 pts handle, the next resistance to watch can be found at 10,116 pts - high from March 25.
DAX members at 9:52 am GMT. Source: Bloomberg
Fitch downgraded Deutsche Bank (DBK.DE) to negative credit outlook while Commerzbank (CBK.DE) had its rating cut to BBB. Fitch said that the coronavirus crisis poses significant threat to the German banking sector and that risks are clearly skewed to the downside. Rating of Deutsche Bank was left unchanged at BBB.
Bayer (BAYN.DE) agreed to pay $39.5 million in order to settle the Monsanto-related case in California court. The cases related to alleged misleading of consumers by failing to disclose that Roundup weedkiller may be harmful to humans and animals.
According to Global Times, Volkswagen (VOW3.DE) has already reopened 22 out of its 24 production plants in China.
Commerzbank (CBK.DE) jumped over 35% from the low on March 16. However, the upward move was halted at 38.2% Fibo level of the February-March downward move. The key support to focus on right now is €3 mark. Source: xStation5
