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DAX extends weekly drop to over 7%
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Lufthansa (LHA.DE) freezes hiring amid demand squeeze
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Norbert Winkeljohann to take over as Chairman of Bayer (BAYN.DE)
European stock market opened lower once again following poor performance of equities in Asia and the United States. The German DAX index dropped below 12500 pts handle earlier in the session but managed to recover slightly. Shares from Belgium, Austria and Sweden are top laggards while Italian FTSE MIB is the most resilient European blue chip index. Travel companies are the worst performing group of stocks.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 (DAX futures underlying) broke below the 200-session moving average (purple line) and plunged towards the zone at 12500 pts handle. The index managed to dip below it and test 12360 pts handle earlier in the session but has recovered since. The German index trades slightly above the 50% retracement level of the upward move started in mid-August 2019. The near-term support to watch is the zone ranging below 50% Fibo level (12540 pts). Taking a look at the potential resistance level to watch during today’s session, bulls should focus on the 200-session moving average in the first place (12640 pts).
DAX members at 10:20 am GMT. Source: xStation5
Lufthansa (LHA.DE) decided to adopt a package of cost-saving measures to offset demand squeeze caused by the coronavirus outbreak. The German carrier decided to freeze all hiring and began to offer employees an unpaid leave effective immediately. Lufthansa will also consider expanding part-time work contracts.
Deutsche Bank (DBK.DE) decided to impose staff travel restriction to and from China, Hongkong and parts of Italy affected by the coronavirus outbreak. The Bank also asked staff to defer all “non-business essential travel”.
Bayer (BAYN.DE) announced that Werner Wenning will step down from the Chairman post by the end of the quarter. He will be succeeded by Norbert Winkeljohann, former chairman of PricewaterhouseCoopers Europe and current member of Bayer’s board.
Analyst actions
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HeidelbergCement (HEI.DE) cut to “neutral” at Goldman Sachs. Price target set at €63
HeidelbergCement (HEI.DE) deepened this week’s drop after receiving downgrade at Goldman Sachs. The stock broke below the support zone at €58.50 to trade at the lowest level since January 2019. The aforementioned zone is the resistance level to watch now while the nearest support can be found at €55. Source: xStation5
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