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Stocks drop despite solid PMIs from Europe
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DE30 recovers after testing 12,800 pts
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BASF (BAS.DE) settles asbestos lawsuit
European stock markets are trading lower along US futures. Drop was triggered by an increase in US-China tensions a few days ago and deepened following the release of German and French PMIs. This can be seen as a surprise as PMIs showed services and manufacturing returning to expansion. Nevertheless, part of the drop has been recouped since.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 dropped below the 200-hour moving average (purple line) and tested 12,800 pts handle amid rising US-China tensions. The index has recovered since and managed to climb back above the lower limit of the Overbalance structure at 12,850 pts. The goal for buyers today is to finish the day above the aforementioned 200-hour moving average, or 12,910 pts. However, release of US PMIs for July at 2:45 pm BST is a potential risk event in the afternoon. Some US states began to unwind reopening amid rising virus case count so there is a scope for disappointment. Finishing the day below 12,800 pts would create a bearish bias for the week ahead.
Company News
A couple of DAX members will release their quarterly reports next week. Among next week's reporters one can find Deutsche Bank (DBK.DE), Fresenius SE (FRE.DE), SAP (SAP.DE) and Volkswagen (VOW3.DE).
Infineon (IFX.DE) is trading lower today. Apart from overall risk-off moods, the stock is also being pressured by yesterday's announcement from Intel. The US tech company said that production of its next generation chips will be delayed due to product flaws. Announcement is weighting on the whole European tech sector today.
BASF (BAS.DE) together with the law firm Cahill, Gordon & Reindel LLP agreed to pay combined $72.5 million to settle a US lawsuit. Lawsuit concerned hiding evidence that some talc products had also asbestos content.
DAX members at 9:50 am BST. Source: Bloomberg
