- European markets trade lower
- Rising inflation concerns and Covid-19 cases weigh on market sentiment
- Lufthansa (LHA.DE) stock fell more than 3% on virus concerns
European indices launched the week under heavy selling pressure amid mounting worries over the spread of Delta variant of COVID-19. However, the declines began on Friday after the data regarding inflation expectations exceeded analysts' expectations. Investors fear that rising inflation may spell problems for economic growth and show that ultra-loose monetary policy is no longer helping the markets. Meanwhile the spread of the delta variant, paradoxically, can even be perceived positively - as an argument in favor of maintaining the current rate of money printing. Oil giants like BP (BP.UK) and Royal Dutch Shell (RDSA.UK) dropped more than 2.0%, hit by falling crude prices after OPEC+ ministers agreed to increase supply from August. Elsewhere, investors monitor a possible shift to the dynamic of Germany's upcoming elections following the country’s weather disaster, with the center right bloc’s lead over the Greens narrowing to 10% pts. Also, England lifts all remaining restrictions on public life at a time when coronavirus infections are high and rising.
DE30 slumped more than 1% on Monday hitting a two-month low amid growing concerns over Covid-19 outbreaks. Index broke below long-term upward trendline, which now acts as the nearest resistance, and is currently testing lower limit of the 1:1 structure. Should break lower occur, then next support to watch lies at 15123.0 pts. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appLufthansa (LHA.DE) stock fell more than 3% amid concerns that the fast-spreading Delta variant could hamper travel demand and slow the ongoing global economic recovery. On Friday travel stocks received a boost after US president Biden hinted at the possible restart of transatlantic flights.
Lufthansa (LHA.DE) stock has been trading in a downward move recently. Currently stock is approaching lower limit of the wedge formation which is strengthened by 61.8 Fibonacci retracement of the last upward wave. Should break lower occur, then downward move may be extended to the € 8.05 handle or even support at € 7.12. Source: xStation5
Linde (LIN.DE) begun operating its fifth liquid hydrogen plant in the United States. To meet mounting demand from customers, the company’s latest La Porte, Texas based plant is expected to supply 30 tons per day of high-purity liquid hydrogen.
Volkswagen AG (VOW3.DE) expect that chip supplies to improve in the next six months. "We hope the chip supply crisis will bottom out this summer and expect to see an improvement in this situation within the second half of the year," Volkswagen's China chief, Stephan Woellenstein, told reporters. From August company will source some chips from a new supplier, Woellenstein said, adding that the move would start to ease the shortage in September.
