German stocks tumbled for an eighth day, the longest losing streak since 1993, after a better-than- forecast U.S. jobs report failed to allay investor concern that the global economic recovery may falter.
Companies from Daimler AG (DAI) and Volkswagen AG (VOW) to ThyssenKrupp AG (TKA) and BASF SE (BAS) fell by more than 3 percent in Frankfurt trading. Allianz SE (ALV) dropped 4.4 percent as Europe’s biggest insurer reported profit that missed analyst estimates.
The benchmark DAX Index (DAX) slid 2.8 percent to 6,236.16 at 5:30 p.m. in Frankfurt, extending this week’s selloff to 13 percent, the biggest five-day decline since 2008. The gauge has lost 17 percent from this year’s high on May 2 amid speculation Europe will fail to contain its sovereign-debt crisis as U.S. growth falters. The HDAX Index lost 2.4 percent today.
“This week has seen some of the heaviest falls for global indices since the heights of the credit crisis,” said Sean Power, an equity analyst at City Index in London. “With well- entrenched concerns over growth in the U.S., European and emerging-market economies, investors are unwilling to carry risk in case the situation worsens next week.”
The DAX recouped some losses after U.S. employers added more jobs than forecast in July, the jobless rate fell and wages climbed. Payrolls rose by 117,000 workers after a 46,000 increase in June, the Labor Department said today in Washington. The median estimate in a Bloomberg News survey called for a July gain of 85,000.
In Germany, industrial production unexpectedly fell in June as construction activity waned and investment-goods output retreated.
Global stocks yesterday had their biggest one-day rout since March 2009, wiping off more than $4.4 trillion from equity-market value worldwide since July 26 as concern mounted that the U.S. economy is weakening.
Daimler, owner of the Mercedes-Benz luxury-vehicle brand, lost 4.3 percent to 41.97 euros today, while Volkswagen, Europe’s largest carmaker, slid 4.5 percent to 115.9 euros. ThyssenKrupp, Germany’s biggest steelmaker, retreated 3.9 percent to 24.6 euros, for a ninth day of declines. BASF, the world’s biggest chemical company, retreated 4.7 percent to 53.99 euros.
Allianz slid 4.5 percent to 79.10 euros. The insurer reported an 8.2 percent decline in second-quarter profit to 1 billion euros ($1.42 billion), which missed the average analyst estimate of 1.28 billion euros in a Bloomberg survey. The company also wrote down its Greek debt holdings by 326 million euros at the end of June.
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