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ThyssenKrupp Trading: ThyssenKrupp Share Price Explained

Date Modified: 15/12/2024

When you picture German engineering prowess applied to steel, elevators, or large-scale industrial projects, Thyssenkrupp (TKA.DE) might come to mind. Let's explore in this trading guide why traders might be interested in this company, why it might be risky to trade Thyssenkrupp's shares, what factors can influence TKA's share price, and how CFD trading on platforms like Plus500 allows you to speculate on its share price over the short-term.

An image of a steel engineering factory

TL;DR

  • Thyssenkrupp is a multinational industrial and technology conglomerate with a diverse range of businesses spanning automotive technology, decarbonization solutions, materials services, steel production, and marine systems.
  • In 2023, Thyssenkrupp employed around 100,000 people in 48 countries through 800 sites and 4 regional platforms.
  • After the merger of Thyssen and Krupp firms, Thyssenkrupp's shares have been traded on the German stock exchange since 1999.
  • Thyssenkrupp's stock price can be influenced by various factors, such as industry trends, global economic health, competition, innovation, and company-specific factors.
  • For active traders looking to gain exposure to the rapid changes in Thyssenkrupp's share price with long and short positions, Contracts For Difference (CFD) can be used with several share trading strategies.

What is ThyssenKrupp AG?

Thyssenkrupp, a global industrial powerhouse born from the 1999 merger of Thyssen AG and Krupp, is a major player in both industrial engineering and steel production. As of March 2023, it proudly stands among the world's largest steel producers, sharing the stage with giants like Baowu, ArcelorMittal (MT.AS), and Nippon Steel.

As of 2024, Thyssenkrupp's activities are organised into five segments:

  1. Automotive Technology
  2. Decarbon Technologies
  3. Materials Services
  4. Steel Europe
  5. Marine Systems

Its products and solutions can be found in various area of expertise such as:

  • Automotive
  • Construction, infrastructure, and buildings
  • Chemicals
  • Energy generation and distribution
  • White goods
  • Food and beverage
  • Aerospace
  • Mechanical and plant engineering
  • Oil (CL) and Gas (NG)
  • Shipbuilding
  • Special vehicles

What Can Move ThyssenKrupp's Share Price?

  • Thyssenkrupp-Related Information & News: Earnings reports published during the earnings season, new contracts, strategic announcements, or changes in leadership are examples of Thyssenkrupp-related information and news that can impact the company's share price by influencing trader sentiment and expectations about its future performance.
  • Green Transformation Innovations: Thyssenkrupp is strategically focused on technologies related to the green economy, particularly in areas like hydrogen, green chemicals, renewable energy, e-mobility, and sustainable supply chains. Advancements in these fields could directly impact the company's product offerings and, consequently, its stock value.
  • Industry-Specific Factors: Trends and developments in the steel, industrial engineering, and technology sectors, such as changes in demand, trends, pricing, and competition, can affect Thyssenkrupp's performance and its share price.
  • Competition: It can act as a constant pressure on Thyssenkrupp, influencing its ability to maintain profitability, market share, and innovation leadership.
  • Economic Growth: A healthy global economy with strong demand, robust infrastructure spending, stable commodity prices, and smooth global trade flows tends to support a higher share price for Thyssenkrupp. Conversely, economic downturns, volatile commodity prices, trade disruptions, and unfavourable changes in interest rates, or exchange rates in the Forex market can negatively impact the share price.
  • Commodity Prices: Fluctuations in the prices of commodities, particularly steel and other related raw materials, can impact Thyssenkrupp's profitability and share price.
  • Market Sentiment and Trader Behavior: The prevailing mood among traders and broader market movements can also play a role in shaping Thyssenkrupp's share price.

While past performance can provide insights, remember that it doesn't guarantee future results.

ThyssenKrupp Share Trading Pros and Cons

What benefits could traders potentially enjoy when trading Thyssenkrupp's shares?

  • Thyssenkrupp's strategic focus on green technologies and the potential for breakthroughs in these areas could create significant market opportunities, making its shares attractive for traders seeking to trade on the growing demand for sustainable solutions.
  • Thyssenkrupp's history of dividend payouts can provide traders with the potential for additional income through dividends, even if their primary focus is on short-term price movements.
  • Thyssenkrupp's strong brand recognition and extensive global network can contribute to increased client confidence, potentially leading to greater stability and growth for the company.
  • Thyssenkrupp's diversified business model, encompassing various industries, can offer traders a degree of protection against sector-specific downturns.

Conversely, what potential risks or downsides could traders face when trading Thyssenkrupp's shares?

  • Thyssenkrupp's susceptibility to economic downturns due to its cyclical business can lead to volatile share prices in times of economic uncertainty, increasing the risk for traders.
  • Ongoing restructuring and transformation efforts within Thyssenkrupp may create uncertainty and potential disruptions, making it more challenging for traders to predict future performance.
  • Thyssenkrupp's reliance on raw materials makes it vulnerable to commodity price fluctuations, which can impact profitability and create price volatility for traders.

How to Trade ThyssenKrupp Share Price with CFDs

Understanding CFDs

CFDs on Thyssenkrupp let you speculate on its share price movements without owning the actual shares or becoming a shareholder and having rights such as voting or dividend rights.

They are an agreement with your CFD provider to exchange the price difference between when you open and close your CFD positions on Thyssenkrupp. With CFDs, you can trade rising and falling prices of the share price with long positions and short positions respectively.

These financial derivatives offer leverage, meaning you can trade a larger position on Thyssenkrupp than with what you have on your trading account, thanks to margin. However, leverage amplifies both profits and losses, which means that CFDs are risky products.

Read our article on the differences between CFD and share trading to get more information about CFDs on shares.

Fundamental Analysis vs Technical Analysis on ThyssenKrupp Stock Price

Fundamental analysis examines Thyssenkrupp's intrinsic value by evaluating its financial health, industry trends, and economic factors to determine if the stock is overvalued or undervalued compared to its market price.

Technical analysis focuses on Thyssenkrupp's trends, past price and volume trading data to predict future price movements. It uses trading charts and confirmation or reversal patterns to identify trends and potential entry and exit points.

CFD Trading Strategies Examples on ThyssenKrupp's Shares

In the world of CFD trading, there are three primary trading strategies you can employ when trading Thyssenkrupp shares: day trading, swing trading and position trading.

Let's have a closer look at these trading styles:

  1. Day Trading: This trading style involves opening and closing positions within a single trading day. Day traders rely on technical analysis to identify big technical triggers and quick decision-making to identify and capitalise on intraday opportunities. With Thyssenkrupp, this could mean reacting to news announcements, economic data releases, or even just general market sentiment shifts throughout the day.
  2. Swing Trading: With this trading style, you hold positions for a few days or a few weeks, aiming to capture price swings within a larger trend. Swing traders often use a combination of technical and fundamental analysis to identify potential entry and exit points. When trading Thyssenkrupp's shares, this might involve tracking the company's performance, industry trends, and broader economic indicators.
  3. Position Trading: This type of trading is a longer-term approach, holding positions for weeks or months. Position traders rather focus on the big picture rather than on small price changes. With Thyssenkrupp, this could involve taking a position based on the company's long-term growth prospects or its role in the broader shift toward renewable energy and sustainable technologies.

Each strategy comes with its own set of risks and rewards, and the best choice for you will depend on your trader profile. Once you've selected your trading style, you can use strategies such as trading economic data or range, and identifying support and resistance.

8 Steps to Start CFD Trading ThyssenKrupp's Shares on Plus500

  1. Understand the basics of stock trading.
  2. Explore the different factors that can influence the price of Thyssenkrupp's stock.
  3. Develop your trading plan.
  4. Open a Plus500 CFD trading account.
  5. Fund your account.
  6. Learn how trading with Plus500 works.
  7. Execute your CFD trade on Thyssenkrupp's shares with risk management tools.
  8. Monitor them.

Conclusion

Thyssenkrupp AG is a prominent global industrial conglomerate, offering an attractive proposition for traders seeking exposure to diverse sectors such as steel, automotive components, and renewable energy technologies, which are integral to the global economy. Trading Thyssenkrupp shares, particularly with CFDs, presents both potential opportunities and risks.

If you're ready to trade Thyssenkrupp's share price, open a trading account on Plus500 to trade CFDs on Thyssenkrupp.

FAQs

Thyssenkrupp is a diversified industrial conglomerate involved in various sectors, including steel production, automotive technology, decarbonization solutions, materials services, and marine systems.

Thyssenkrupp's shares are listed on the German stock exchange, especially Frankfurt and Düsseldorf, under the ticker "TKA". The company's shares are also listed on Wall Street as American depositary receipts under the symbol “TKAMY”.

While the Frankfurt Stock Exchange generally operates from 8 am to 10 pm CET, CFD trading hours for Thyssenkrupp on the Plus500 platform may vary. Sometimes, CFD traders can also trade on certain instruments during extended trading hours.

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