DE30: Wirecard craters on another 2019 results delay

• European equities lack conviction on Thursday

• DE30 paints bearish pin bar

• Wirecard (WDI.DE) craters on 2019 results delay

European indices struggle to find a direction today and keep swinging around yesterday's closing prices. Wirecard is in the spotlight when it comes to DAX members as the company once again delayed release of 2019 financial results. 

Source: xStation5

DE30 as well as other major stock market indices from Europe launched today's session slightly lower. However, we saw a strong move higher after the news that Beijing has got Covid-19 outbreak under control. DE30 jumped above 200-hour moving average  - resistance that has been limiting upside in the past few days. Nevertheless, bears regained control and a bearish pin bar pattern (orange circle) was painted at the aforementioned moving average. Pullback extended. First support to watch is 50-hour moving average (green line, 12,310 pts) while 12,150 pts handle serves as the second one. When it comes to resistance levels ahead, the most important one for now is the 200-hour moving average. Clearing this hurdle would pave the way for a test of 78.6% retracement at 12,560 pts. US jobless claims data at 1:30 pm BST could have an impact on the equities.

DAX members at 10:34 am BST. Source: Bloomberg

Wirecard (WDI.DE) shares cratered today. The company was set to publish a delayed 2019 annual report today. Release was expected ahead of session open. However, the company's spokesperson said that it will be released over the course of the morning. Shortly before 10:00 am BST Wirecard issued a statement saying that there are indications of spurious balance confirmations and… release will be delayed. New release date is expected to be announced shortly. Company also said that if 2019 financial statements are not concluded by June 19 (tomorrow), loans amounting to €2 billion may be terminated. Low of the day was reached at €35, or -66.2%! It was later said that Wirecard was unable to locate around €1.9 billion on its bank accounts.

Siemens Gamesa Renewable Energy (SGRE.ES), subsidiary of Siemens (SIE.DE), terminated contract with CEO Markus Tacke with immediate effect. Andreas Nauen, current CEO of the offshore division will take over. Siemens Games was trading as much as 8% lower at one point of the session today. Siemens holds 67% stake in Siemens Games.

Board of MTU Aero Engines (MTX.DE) made a unanimous decision to raise the age limit for Board members to 75. The move allows current Chairman Klaus Eberhardt (72 years old) to remain in the position until his mandate runs out in 2023. In other news, the company received a downgrade at Hauck & Aufhaeuser from "hold" to "sell". Price target was set at €130.

Share price of Wirecard (WDI.DE) cratered after the company announced another delay to 2019 results. Price reached a daily low at €35, or -66.2%! This was the lowest level since July 2016. However, some dip buying occurred and the share price recovered to around €50. Source: xStation5