DAX futures soft, Wirecard to be closely watched on Friday
As DAX futures trade softly, investors will likely be closely watching Wirecard after the company’s CEO said that ‘fraud of considerable proportions’ could not be ruled out.
European markets at a glance
Many key European markets fell on Thursday – with the Swiss SMI, Italian FTSE MIB, French CAC and German DAX all registering losses.
The Germany 30 benchmark was the worst performing of those indices, falling 0.81% or 100 points, to finish yesterday's session at the 12,281 point level.
On a more granular level, BASF, Covestro and Vonovia were the best performing German equities; while Henekl vz, Lufthansa and Wirecard were the worst performing stocks on Friday.
Wirecard share price falls following missing cash revelation
The biggest story on Thursday came from payments giant Wirecard (WDI), with the company revealing that €1.9 billion – representing approximately one quarter of the firm’s cash – couldn’t be located by auditors.
Here, Wirecard said that its auditor – Ernst & Young (EY) – told the company that ‘no sufficient audit evidence could be obtained so far of cash balances on trust accounts to be consolidated in the consolidated financial statements in the amount of EUR 1.9 billion.'
In response to this, Wirecard has again pushed back the release of its annual 2019 results, with management saying that it is working ‘intensively’ to clarify the situation.
In saying that, the company warned that ‘If certified annual and consolidated financial statements cannot be made available until June 19, 2020, loans made to Wirecard AG amounting to approximately EUR 2 billion can be terminated.’
Adding to all this, on Friday, Wirecard’s CEO Markus Braun said in a video statement that:
‘At present it cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions.’
Investors will likely be closely watching Wirecard’s stock on Friday after it finished yesterday’s session down a staggering 61.28% at €39.90 per share.
For reference, Wirecard traded at around €151 per share a year ago.
DAX futures point to slightly lower open
In more general terms, at of 5:33am (GMT+2) DAX futures currently suggest the market will open 17 points or 0.14% lower on Friday, 19 June.
From a technical perspective, IG’s Senior Market Analyst, Joshua Mahony yesterday wrote:
‘The DAX saw a similar breakdown below key support overnight, with the drop through the 12,217 level signalling the potential for another bearish phase for the index. With the price already at the 76.4% Fibonacci resistance level (12,369), we are already at a crucial crossroads where the index would have to start turning lower before long for the bearish picture to emerge.’
How to trade global markets – long or short
What do you make of the current situation: do you see bullish or bearish opportunities? Whatever your view, you can trade indices, currencies and equities – both up and down – through IG’s trading platform now.
For example, to buy (long) or sell (short) the DAX using CFDs, follow these easy steps:
- Create an IG trading account or log in to your existing account
- Enter ‘Germany 40’ in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.