DAX Slips on Weaker Daimler EPS – Brace for Sell-off
Arslan Butt • 1 min read
The German stock exchange index, Ger30/ DAX edged lower. The selling trend triggered over weak earnings reports from major carmaker Daimler. The benchmark DAX was down 50 points or 0.44 percent at 11,318 after rallying 1.7 percent in the previous session.
Mercedes parent company Daimler stated that it expects “slight growth” in vehicle sales, revenue and operating profit in 2019, following a year of turbulence in which net profits slumped 28%. The company’s fourth quarter operating profits fell 22% to €2.67bn, missing forecasts for €2.92bn.
Besides, the developments on the US-China trade war are also keeping the global stocks under pressure. US President Donald Trump announced that a new trade deal with China must carry a real structural change to cease unethical trade practices.
DAX – Trade Idea
The idea is to stay bearish below 11,360 with a stop loss above 11,550 and take profit around 11,295.