Summary
- Start to LSE trading was delayed due to a technical glitch
- DAX (DE30) approaches short-term resistance zone
- Tech stock trade higher thanks to solid earnings report from NVIDIA (NVDA.US)
Main European stock market indices post gains on Friday after heavy declines in the earlier part of the week. While scale of an upward move is similar all across the Old Continent, two exceptions can be spotted - Polish WIG20 (W20) and UK FTSE 100 (UK100) - as they lag broad advance.
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DE30 moves off the 4-month low on Friday but further recovery may be put under question. The German index trades slightly below the zone (11530-11560 pts) that saw price reaction several times this month. A break higher would potentially pave the way towards the resistance zone ranging above the 11780 pts handle. Source: xStation5
Delayed start to LSE trading
Weaker performance of the UK equities can be to some extent blamed on the technical issues that the London Stock Exchange experienced today. Namely, due to a technical glitch the start of the UK session for large- and mid-cap stocks was delayed by over an hour and a half. The exact cause of delay was not found yet but the stock exchange informed it will launch an investigation into the matter. Note that it was the second such situation in the past dozen or so months as similar problem arose in June 2018. Back then it was said that the software issue was to blame. Repeat of such situation may see some investors get discouraged from trading on the London bourse, especially as it happened at such a hot period for stock markets.
DAX members at 10:49 am BST. Source: Bloomberg
Company News
Infineon Technologies (IFX.DE) and Wirecard (WDI.DE) can be found among the best performing DAX stocks on Friday morning. Sentiment towards tech sector was boosted by the release of an upbeat earnings report from NVIDIA (NVDA.US). Applied Materials (AMAT.US), another US company from the semiconductor sector, also reported earnings yesterday and those came in-line with expectations. However, what seems to be the main reason behind good performance of the tech sector today is the fact that neither of the two companies decided to lower guidance for the second half of the year.
Bayer (BAYN.DE) can be found among DAX top gainers today following an upgrade it received at the Bank of America Merrill Lynch. The Bank raised the recommendation for the stock from “neutral” to “buy”. Price target was lifted from €70 to €85, implying an over 30% increase against yesterday’s closing price.
After a few failed attempts of breaking above the €155 handle, Wirecard (WDI.DE) dipped towards the lower limit of the recent trading range. The stock is trying to halt decline at the combination of a support zone and the 200-session moving average. A bounce higher from there could take the price back to the vicinity of the €155 handle. Source: xStation5
