Renault shares plunge by more than 13%
Nissan’s chairman Carlos Ghosn is said to be arrested on allegations of a suspected breach of financial trading law and the company itself confirmed that Ghosn has under-reported income ‘over many years’. As a result, Nissan and Renault shares have tumbled across the board and put a bid in the swissie as it is driving down European equity gains, mostly in the DAX.
Renault shares are now trading more than 13% lower on the day:
As a result, EUR/CHF has now fallen back below the 100-hour MA (red line) and now sellers are in control as near-term bias turns more bearish. Price action is a little choppy today but the downside break here will at least give sellers some incentive to test the swing region support near 1.1360 in the near-term.
It’s hard to see any longer-term implications to come from this as US equity futures are still trading rather flat on the day. For now, the focus on the alleged arrest above is keeping European equity investors in a defensive mood and helping to boost the swissie. But I expect this to pass over as long as the overall equities sentiment remains well intact.
In times like these, always look to ‘buy value, sell hysteria’. To quote Jim Rogers.