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Trading.co.uk catches Mercedes’ parent company's emissions investigation hours before major news sources

Since the Volkswagen emissions scandal broke in September (2015), the car industry has been under the spotlight for several months and, more recently, other car manufacturers have had the finger pointed at them in regards to fixing emissions tests.

Early morning Friday April 22, 2016 (UK & Europe time), it emerged that Daimler, the parent company of the Mercedes-Benz marque, said that it is conducting an internal investigation of its certification process for diesel exhaust emissions in the United States, at the request of the Justice Department.

Daimler had closed trading on Thursday at a relative high of more than 66 per share [see image, right]. The news originally broke in the US long after the markets had closed in both Europe and America and overnight the price shifted so that when the markets opened, Daimler’s stock took a noticeable dip and have been sliding since.

Even though some US media outlets broke the news late Thursday evening/ early Friday morning, it wasn’t until later that morning that many major UK and European news outlets began reporting the story.

So for any traders not looking for news from US sources, or not awake at 1am on a Friday morning, they would have easily missed the few news stories that had broken out of trading hours.

For users of Trading.co.uk, however, it was a different story.

Monitoring the markets 24/7

A key component in the Trading.co.uk platform is its ‘Pulse’ technology. The platform monitors online mentions of each company, 24/7, from multiple sources and can detect when the volume of chatter online is just a normal day and when it’s unusually high.

Trading.co.uk then alerts users to the fact that something is happening around a company and, coupled with many other financial components, it enables traders to see deeper insights to support their trading strategies.

In the case of Daimler, Trading.co.uk’s Pulse measurement originally alerted users to an unusual amount of activity around Daimler at 12:30AM (CEST) [Image, right, shows the time when Trading.co.uk users were originally alerted to unusual Daimler activity]. The platform also monitored for more shifts in activity and alerted users throughout the morning to the shifts in the Pulse measurement.

By the time the markets reopened at 9AM, users of Trading.co.uk would have already seen at least 5 alerts around Daimler. These Pulse alerts along with negative sentiment and ‘hot topics’ would have shown the story breaking around Daimler. [Image, below, shows the Pulse measurement chart at market open on Friday 22 April, 2016 - by this time, Trading.co.uk users received multiple alerts to Daimler's activity]

Upon market open, stock in Daimler had dropped some 6% and it wasn’t until 9:23AM (CEST) that shares started to fall further.

Daimler emissions probe timeline (note: all times in CEST):

  • Friday April 22, 2016
    Daimler announces internal emissions investigation
  • 12:00AM
    Early articles from US news sources
  • 12:30AM
    Trading.co.uk sends out initial alert to users
  • 12:30AM – 9:00AM (market open)
    Trading.co.uk sends out multiple alerts as it monitors unusual activity around Daimler
  • 9:00AM (market open)
    On market open Daimler stock is trading 6% lower than at market close
  • 9:23AM
    Stock in Daimler starts to drop further
  • 11:30AM
    Major UK media begins reporting Daimler’s emissions probe and the slide in stock price

Outcome
If you had been using Trading.co.uk as a source for financial information, you would have seen several alerts and growing volume of chatter around Daimler, in particular on the topic of the emissions probe, more than 8 hours before the markets opened and 11 hours before major UK news outlets began reporting the incident.

These pieces of information found on Trading.co.uk first, could have helped a savvy trader make an informed decision about their stocks in Daimler - seeing a significant saving when the markets opened and the company’s stock dropped.

 

Trading.co.uk is currently in its open beta phase. Register for a free account today and see how Trading.co.uk can help you find deeper financial insights, to support your trading strategy.

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