German Stocks Slide; Deutsche Bank, Aareal Bank Lead Declines
Stock Chart for Deutsche Bank AG (DBK)
Deutsche Bank, the country’s largest lender, decreased 2.6 percent. Aareal Bank sank 3.4 percent after saying it will hold a rights offer. Wacker Chemie AG (WCH) slid 1.9 percent after Nomura Holdings Inc. cut its recommendation on the shares.
The benchmark DAX Index (DAX) slipped 31.41, or 0.4 percent, to 7,146.56 at the 5:30 p.m. close in Frankfurt. The measure has declined 3.8 percent from this year’s high on Feb. 18. The broader HDAX Index (HDAX) also lost 0.4 percent today.
The U.S. Federal Reserve in its Beige Book report yesterday said the economy expanded at a “moderate” pace across much of the U.S. in February and March. Some districts noted that “uncertainties remained high” after production disruptions following Japan’s tsunami and nuclear crisis.
“The market remains nervous and volatile,” said Yves Marcais, a sales trader at Global Equities in Paris. “The Beige Book is weighing on the market. What happened in Japan will have a more pronounced impact on the U.S. economy.”
The number of people filing first-time claims for unemployment insurance in the U.S. rose 27,000 last week to 412,000, the most in two months, Labor Department figures showed today. Economists had projected that the number of claims would be little changed at 380,000, according to the median estimate in a Bloomberg News survey.
Deutsche Bank fell 2.6 percent to 41.60 euros.
Aareal Bank tumbled 3.4 percent to 23.47 euros as the German commercial-property lender said it plans to raise about 269 million euros ($389 million) in a rights offer to help repay money that it tapped from the Soffin financial-rescue fund.
Wacker Chemie retreated 1.9 percent to 159.05 euros after Nomura cut its recommendation on the shares to “reduce” from “buy.”
Colexon Energy AG (HRP) tumbled 12 percent to 1.24 euros after the company said it has started to restructure.
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