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European stocks open lower on final trading session of the week
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DE30 dipped at the beginning of the cash session but managed to recover
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Juncker says that Trump will not impose tariffs on European cars
In spite of the Chinese trade data beating expectations, the European stock market indices launched final trading session of the week lower. The biggest declines can be spotted on the Russian stock market, followed by Polish and French equities.
Source: xStation5
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Open account Try demo Download mobile app Download mobile appDE30 managed to break above its recent short-term trading range (13115-13165 pts). The upward move eased after reaching the 13300 pts handle and the index began to pull back. Lower limit of the Overbalance structure can be found at 13065 pts and should be considered key support to watch. However, the index has formed a floor at 13225 pts and this level is the nearest support to watch during today’s session. Should the index dive below this level, the 50-session moving average (green line, 13200 pts area) will be the next chance for buyers to hold declines. Short-term resistance can be found at the upper limit of the Overbalance structure (13300 pts). With European economic calendar being almost empty today, trading ahead of the US open may be somewhat muted.
DAX members shortly after the opening of Friday’s session. Source: Bloomberg
Allianz (ALV.DE) reported earnings ahead of today’s session open. The German company saw a 5.7% QoQ increase in third party AUM to a record €1.68 trillion. Total assets under management reached €2.28 trillion. Operating profit for Q3 stood at €2.98 billion, marking a 1.3% beat. Slight disappointment in property & casualty segment was offset with better-than-expected results of life & health and asset management units. Revenue of €33.4 billion was 2.2% higher than expected. The German insurer now expects full-year operating profit to be in the upper half of the forecast range of €11-12 billion.
Deutsche Lufthansa (LHA.DE) is reconsidering its fleet plans. The German carrier decided to step back from buying 14 wide-body 777X Boeing jets worth $6.2 billion. Instead, Lufthansa will hold options for purchases and exercise them once it is needed. The German company order 34 777X jets six years ago but will only purchase 20 of them. Service entry of new Boeing aircraft is expected in early-2021.
Traders should expect more volatility on stocks of carmakers today. Jean-Claude Juncker, President of the European Commission, said that Donald Trump will not impose tariffs on the European cars during an interview. The US President gave himself a mid-November deadline for the decision.
Allianz (ALV.DE) reached the highest levels since the first half of 2002. Upward move was halted at the 127.2% exterior retracement of the downward move that lasted from mid-July to mid-August. The stock dropped off a cliff after the release of Q3 earnings report. The nearest support zone to watch ranges below the €219 handle. The stock is smashing through the 33-period exponential moving average at press time (green line, €221.30 area). Source: xStation5
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