European Stocks Under Pressure. DAX40 Down Over 2%

General market situation: European markets are trading lower during Monday’s trading session. The German DAX on the cash market is losing almost 1.4% (the DE40 contract is losing 2.3%). No important macro releases are scheduled for today. German companies are reacting to the Green Party’s announcement that it will not agree to an unconditional coalition with the CDU and SPD in the context of the budget bill.

On the broader European market, we are seeing declines in the prices of shares of most companies representing the main sectors of the economy. The exceptions are, among others, automotive and energy companies. Source: xStation

The German DE40 index is losing 1.75% today on an intraday basis. The most important support for the index remains the 50-day EMA (blue line on the chart) and the support area of ​​the consolidation zone at almost 21,230 points. Technically, DE40 is still maintaining a stable upward trend. Source: xStation

Corporate News:

Rio Tinto (RIO.UK) shares are down nearly 0.5% in today’s session after hedge fund Palliser Capital published a letter to Rio Tinto’s CEO on Monday urging further steps to unify its dual-listing structure following a report of a valuation mismatch at Grand Thornton. The difference limits Rio Tinto’s ability to pursue large equity-based mergers and acquisitions and complicates equity capital raising.

Allianz (ALV.DE) shares are down after the WSJ reported the company was in talks to acquire Viridium in a deal worth more than $3 billion.

Carl Zeiss Meditec (AFX.DE) is down 6.7% after the stock was placed on JPMorgan’s negative catalyst list, highlighting continued underperformance and concerns about losing market share in China and the U.S.

The company’s shares are now falling below the 100-day EMA (purple line), which, along with the 50-day EMA (blue line), are key support points for the stock.

Source: xStation 

Other news from individual DAX companies. Source: Bloomberg Financial LP

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