German Stocks Drop After U.S. Jobs Data Trail Estimates
German stocks declined for a fourth day after a report showed that U.S. employers added fewer jobs in March than forecast.
Deutsche Bank AG (DBK) and Commerzbank AG (CBK) retreated. 3W Power SA tumbled 48 percent after saying a takeover attempt by Andrem Power SCA won’t proceed. SGL Carbon SE (SGL) climbed after managers bought 4 million euros ($5.2 million) of shares in the company.
The DAX (DAX) Index fell 168.83, or 2.5 percent, to 6,606.43 at the close of trading in Frankfurt. The gauge has still rallied 12 percent this year amid optimism that the euro area’s leaders would contain their region’s sovereign-debt crisis and as U.S. economic releases exceeded estimates. The broader HDAX Index also dropped 2.5 percent today.
“European investors are catching up to global markets concerned by political pursuits of austerity lacking growth, weak sentiment from U.S. jobs, higher Chinese inflation, and doubt of continued stimulus,” said Daniel Weston, a portfolio adviser at Schroeder Equities GmbH in Munich.
German stocks fell 2.5 percent last week as Spain sold fewer bonds than it had targeted at an auction and the U.S. Federal Reserve damped expectations for further monetary stimulus.
U.S. stocks dropped yesterday after a report showed that American employers added 120,000 jobs in March, the fewest in five months and less than the median economist forecast of 205,000 in a Bloomberg survey. The number of hirings had exceeded 200,000 for three straight months.
U.S. and European equity markets were shut for the Good Friday holiday on April 6, when the Labor Department released its employment report.
Prime Minister Mariano Rajoy met with his health and education ministers yesterday to discuss cuts of more than 10 billion euros, according to an e-mailed statement. The government reiterated its pledge to reduce the deficit to 3 percent of gross domestic product next year and said it will accelerate its sale of stakes in lenders under government administration.
In Germany, exports unexpectedly increased for a second month in February, led by demand from outside Europe. Exports, adjusted for work days and seasonal changes, rose 1.6 percent from January, the Federal Statistics Office in Wiesbaden said today. Economists had predicted a drop of 1.2 percent, according to the median of 10 estimates in a Bloomberg News survey. Imports surged 3.9 percent.
Deutsche Bank AG (DBK) and Commerzbank AG (CBK), Germany’s largest lenders, dropped 4.2 percent to 33.70 euros, and 5.9 percent to 1.65 euros, respectively. Banks were among the worst performers on the Stoxx 600 Europe Index. (SXXP)
Daimler AG (DAI), the maker of Mercedes-Benz cars and trucks, fell 4.8 percent to 40.82 euros, dropping for a fourth day, as automakers retreated. The preferred shares of Volkswagen AG (VOW3), Europe’s biggest carmaker, slid 3 percent to 125.10 euros. Bayerische Motoren Werke AG (BMW) dropped 2.6 percent to 65.08 euros. Porsche SE (PAH3) lost 4 percent to 41.95 euros.
3W Power (3W9), the holding company that owns the German maker of solar inverters AEG Power Solutions, plunged 48 percent to 2.21 euros after saying a takeover attempt by Andrem Power SCA won’t proceed.
SGL Carbon rose 1.1 percent to 33.22 euros. The German maker of carbon materials said the managers have bought 112,320 shares.
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