DE30 pulls back from the top of short-term trading range

• European indices turn lower after higher opening

• DE30 pulls back from the top of short-term trading range

• MTU Aero (MTX.DE) declines on weaker FY guidance

Investors from Europe launched today’s trading in upbeat moods with majority of European blue chips indices showing an upward price gaps at the opening. However, most of the indices turned lower during the first hour of trading. The biggest decline can be spotted on the Polish WIG20 (W20) while Portuguese shares gain the most.

Source: xStation5

The upward move on DE30 reached another hurdle. The German index struggled to break above the 12875 pts handle yesterday and today’s attempt to break above also turned out to be a failure. Having said that, this level can be considered a short-term resistance to watch during today’s session. The index is now testing the lower limit of the recent range at 12835 pts. The next near-term support in line can be found at 12785 pts handle, slightly below the 50-hour moving average (green line). The key support to watch over the short-term is located at the 12670 pts handle - the lower limit of the Overbalance structure. Note that this level also coincides with the 200-hour moving average (purple line).

DAX members at 8:38 am BST. Source: Bloomberg

GEA Group (G1A.DE) is one of the best performing MDAX members at the beginning of Friday’s trade. The company decided to boost full-year revenue forecast. The German food company expected slight decline in revenue in 2019 but now expects growth to be flat. The move comes after the company reported Q3 earnings that matched analysts’ estimates.

Infineon Technologies (IFX.DE) is trading higher along with other semiconductor makers. Improved sentiment towards the sector is a result of yesterday’s Intel earnings release. The US giant reported higher than expected revenue and earnings, thanks to solid demand for data center chips, and issued an upbeat guidance for the Q4 2019.

Puma (PUM.DE) received a downgrade at Societe Generale. Recommendation for the stock was lowered to “hold” from “buy”. Price target was set at €73.

MTU Aero (MTX.DE) reported Q3 earnings today before session open. Revenue at €1.16 billion was 7.2% lower than analysts’ median estimate. Net income at €130.7 million also disappointed as market expected €135.8 million. On the other hand, adjusted Ebit was higher than expected at €192.5 million. Nevertheless, the stock is trading lower today as weaker FY guidance (€4.7 billion revenue) weights on valuation.

Infineon Technologies (IFX.DE) jumped at the beginning of today’s session as solid earnings report from Intel (INTC.US) boosted sentiment towards the semiconductor sector. However, this gain is being erased. Shares are trading slightly below the key resistance - 200-session moving average (purple line, €17.65 area). Source: xStation5