-
Upbeat moods at the beginning of the European trading
-
DE30 opens higher but slides afterwards, 50-hour moving average in play
-
Carmakers jump on Politico report concerning car tariffs
Stocks in Europe are trading higher at the beginning of Tuesday's session, thanks to good performance of miners, IT stocks and carmakers. The biggest gains can be spotted on stock exchanges in Russia and Italy. However, not every European index is rising today - Swiss, Portuguese and Polish equities lag.
Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appDE30 dipped yesterday and tested the 13165 pts handle. Buyers managed to halt the decline and push the index higher. The index attempted breaking below the short-term swing level at 13220 pts handle at the beginning of the session. A point to note is that 50-hour moving average (green line) can be found in the same area therefore significance of this support may be greater. Should DE30 break lower, we may see an acceleration in a downward move and potential retest of the aforementioned 13165 pts handle. Key support remains unchanged at the lower limit of the Overbalance structure (13065 pts). However, one should keep in mind that carmakers make up a significant part of the index therefore the decision on European car tariffs may be a game changer for the German index.
Infineon Technologies (IFX.DE) and Deutsche Post (DPW.DE) surge on earnings reports. Source: Bloomberg
Infineon Technologies (IFX.DE) reported earnings for the fiscal Q4 2019 (July-September 2019) ahead of opening of today’s session. The German semiconductor company generated revenue of €2.06 billion, slightly higher than expected. On the other hand, EPS of €0.19 was lower than the median estimate of €0.20. Total segment profit of €311 million was 5.7% higher than expected. The company expects segment result margin at 16% in fiscal 2020 and investments at €1.3 billion. The company expects revenue growth in the range of 3-7%.
Deutsche Post (DPW.DE) also released its earnings report ahead of today’s session. Cost controls and price increases helped the German postal company achieve EBIT of €942 million, 150% more than a year ago and above analysts’ estimates. Parcel revenue in Germany increased 9.9% YoY while mail revenue increased 3.3% YoY. Air freights disappointed with 5.1% YoY decline but company explained that this segment is particularly sensitive to developments in the economy. CEO said that Deutsche Post expects holiday season in Q4 to be strong as usual.
Carmakers are trading higher today, thanks to Politico reports. Politico claims that the US President, Donald Trump, will announce decision on the European car tariffs tomorrow and he is expected to opt for another 6-month delay. Carmakers like Daimler (DAI.DE), Volkswagen (VOW3.DE) and BMW (BMW.DE) seem to like these news.
Infineon (IFX.DE) opened with a huge upward price gap today. Investors seem to be satisfied with earnings report the company has released. The stock tested the resistance at €19.95 shortly after session opened but failed to break above. This level is the near-term resistance to watch. When it comes to support levels to watch, traders should focus on the zone ranging below the €19.00 handle. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
