- European Indices Under Pressure
- Disappointment with NDRC Conference in China Causes Pullback in Asia
- Samsung Forecasts Lower Operating Profits for the Quarter
Overall Market Situation:
Tuesday's session on European stock markets is bringing declines in most indices. The German DAX is currently down 0.1%. The British FTSE 100 is losing over 1.05% at the same time. The French CAC40 is down 0.58%. Investors' attention is focused today on corporate information, particularly the Chinese issue, where the failure to meet expectations for new economic stimulus packages has caused a significant pullback in assets related to this market.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading close to 0.27% higher during Tuesday's session, despite the DAX losing on the cash market. It seems that the key support points for the broad upward trend remain the recent peak zones (19,000 points) and the 50-day EMA (blue curve on the chart). The most important resistance remains the historical peak close to 19,650 points. Source: xStation
News:
As previously mentioned, investors' attention is once again turning towards China. It is the sentiment around this market that is putting pressure on European companies today. To recap, the Hang Seng index ended today's cash session down nearly 10%, as the market was disappointed by the lack of new stimulus programs from Chinese authorities. The press conference of the National Development and Reform Commission (NDRC) did not provide the additional economic support that investors had hoped for. This was particularly surprising as China had previously announced the strongest stimulus measures since the pandemic, such as cheap loans for companies to buy back their own shares.
In response to this information, fashion companies, which generate a large portion of their profits in China, are particularly struggling today. Additionally, the local automotive sector is under significant downward pressure due to the trade war between the European Union and China.
Furthermore, South Korean tech giant Samsung Electronics (SMSN.UK) announced today that it expects lower-than-expected profits in the third quarter. In its quarterly forecast, the world's largest memory chip maker stated that operating profit for the quarter ending in September is expected to be around 9.10 trillion won, up from last year's 2.43 trillion won. Analysts surveyed by LSEG had expected an operating profit of 11.456 trillion won. Shares of the company's ADRs listed in London are currently down 1.5%.
Other news from individual DAX index companies. Source: Bloomberg Financial LP
