German stocks were little changed after two days of gains, with the benchmark DAX Index (DAX) heading for its fourth consecutive quarterly advance, as investors awaited reports that may show U.S. consumer spending and sales of previously-owned homes increased in May.
MorphoSys AG (MOR) surged 16 percent after announcing an alliance for an experimental cancer treatment with Celgene Corp. worth as much as 628 million euros ($818 million) plus royalties on sales. Adidas AG (ADS) added 2.6 percent as Barclays Plc raised the stock to overweight. Lanxess AG (LXS) fell the most in three months after China said it will collect anti-dumping duty on toluidine imports from the European Union for five years.
The DAX Index climbed less than 0.1 percent to 7,944.42 at 10:05 a.m. in Frankfurt. The equity benchmark is heading for its fourth consecutive quarterly gain, after yesterday extending the first weekly advance this month. The broader HDAX Index increased 0.2 percent today.
The DAX slipped 4.8 percent so far this month, its biggest decline in 13 months, as investors prepared for a potential paring of stimulus this year by the Federal Reserve if the U.S. economy improves in line with forecasts. Stocks rallied around the world yesterday after a report showing slower-than-estimated U.S. economic growth fueled speculation that the central bank will maintain stimulus.
In the U.S., a report at 8:30 a.m. New York time may show that personal spending increased 0.3 percent last month, after a 0.2 percent drop in April, according to the median forecast of 83 economists in a Bloomberg News survey.
Separate data from the National Association of Realtors at 10 a.m. will probably show that an index of pending-home sales rose 1 percent in May after a 0.3 percent gain in April.
European Union finance ministers struck an agreement early this morning on how to handle failing banks to bolster investor confidence and help overcome the euro area’s financial crisis.
Ministers settled on guidelines for assigning losses to private creditors and regulating public assistance. They also spelled out when governments can step in and established a role for the European Stability Mechanism, the euro area’s 500 billion-euro firewall fund.
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