- European indices gain noticeably at the opening
- DAX (DE on xStation5) is stuck just before a crucial resistance
- Thessenkrupp (TKA.DE) rises more than 3% being the best performer stock
Asian equity markets ended the day with upbeat spirits in general. There was a light macroeconomic data, however those which were published for the NZD proved to be sub-par spurring investors to cash in on recent longs. In early trading the German DE30 is the best performing index in Europe.
Taking a look at the chart above one could spot that price has fairly quickly approached a crucial resistance area, bulls are just ahead of a clash though.
A breakout of the support zone is a possible scenario, however needless to say that bulls would have to struggle with a long-term trend line if they wanted to come back above it thereby achieved much higher levels. First targets for them could be found nearby 12640 points and higher in the vicinity of 12850 points. Otherwise if bulls fail to break it, it could ultimately lead to a move down into a consolidation.
Before we move to company news let’s present a brief round-up of the Asian session. The Hang Seng (HKComp) was by far the best index with a gain exceeding 2.2% leaving its peers far behind. Besides, the NIKKEI (JAP225) gained 0.57%, the Chinese Shanghai Composite slid 0.3% while the Australian S&P/ASX200 (AUS200) added a mere 0.08%. In turn, the European bourses are thriving as for now with the DE30 being the standout gainer going up 0.54%. Elsewhere, the CAC40 (FRA40) is rising 0.17%, the Eurostoxx50 (EU50) is adding 0.28% whereas the Italian FTSE MIB (ITA40) is creeping up 0.14%.
As we pointed out in summary, Thyssenkrupp (TKA.DE) is decisively the best performing stock in early trading. A reason behind is simple, the company intends to cut to 2000 to 2500 of its administrative jobs through September 2020 as it seeks to reduce administrative costs from 2.4bn EUR. The firm aims for 400m EUR savings as a result of jobs cutting which are to help to meet EBIT targets.
Besides, the second best stock is Volkswagen (VOW.DE) which is up despite news coming from China that the company reported a decline of Audi’s sales in China in a first half of the year. On the other hand, deliveries of Porsche’s vehicles to China is up 18% yoy in the same period of time. By and large, investors seem to be fond of automaker’s share which are gaining all but 1.5%.
As far as the worst performing stocks are concerned, there are four losers which are shrinking their market cap without any news standing behind these moves, losses are not substantial though.