German Stocks Erase Gains as SAP Falls, ThyssenKrupp Gain

German stocks erased earlier gains, leaving the benchmark DAX Index little changed, as a selloff in SAP AG (SAP) offset better-than-forecast Japanese industrial production data.

SAP, the largest maker of business-management software, dropped 2.2 percent after Accenture Plc issued a revenue forecast that fell short of analyst estimates. Deutsche Bank AG and Merck KGaA dropped more than 1 percent, while ThyssenKrupp AG (TKA) and Commmerzbank AG paced gains.

The DAX rose less than 0.1 percent to 7,991.85 at 11:11 a.m. in Frankfurt, extending its quarterly advance to 2.5 percent. The gauge has still lost 4.3 percent in June, its biggest decline in 13 months, after the Federal Reserve indicated it may start paring its stimulus program this year. The broader HDAX Index fell less than 0.1 percent today.

The market should “pause for a second,” Alex Friedman, chief investment officer at UBS AG, told Francince Lacqua on Bloomberg Television from Zurich. “What the Fed has done is really not unexpected. The biggest risk right now is that investors basically misinterpret what the Fed is doing and I think that creates buying opportunities.”

The German VDAX Index, which measures the cost of buying protection against swings on the DAX (DAX), has still increased 13 percent in June and is headed for the first back-to-back monthly advance in 13 months.

Stocks rose earlier after a report showed that Japanese factory output rose 2 percent in May, the most since December 2011. Economists had projected that industrial production would climb 0.2 percent from the previous month, according to the median estimate in a Bloomberg News survey.

Lockhart Comments

Fed Bank of Atlanta President Dennis Lockhart said after the close of European trading yesterday that investors may have overreacted to Fed Chairman Ben S. Bernanke’s announcement that the central bank could taper its bond-buying program.

Speaking in Marietta, Georgia, Lockhart said that the Fed’s very low interest-rate policy will remain in place for a considerable time and policy will remain “highly accommodative.”

SAP dropped 2.2 percent to 56.73 euros. European technology companies slid after Accenture, the world’s second-largest technology-consulting company, forecast fourth-quarter revenue of $6.7 billion to $7 billion. That missed the $7.36 billion average analyst estimate.

The company is considered a bellwether for the information-technology market because its earnings cycle ends one month sooner than competitors.

Deutsche Bank

Deutsche Bank, Germany’s largest lender, lost 1.2 percent to 32.73 euros. A gauge of banking stocks was among the worst performers of the 19 industry groups on the Stoxx Europe 600 Index.

Merck, maker of cancer drug Erbitux, slid 1.2 percent to 118.45 euros. A measure of healthcare companies fell the most on the Stoxx 600.

ThyssenKrupp advanced 1.9 percent to 14.90 euros. Sueddeutsche Zeitung reported that RAG Foundation could become a shareholder in the steelmaker and participate in a capital increase that together with Alfried Krupp von Bohlen und Halbach Foundation will help to protect ThyssenKrupp from a hostile takeover. The newspaper cited people familiar with the matter.

Commerzbank AG (CBK) rose 2.9 percent to 6.79 euros, rebounding from a six-day selloff that sent the shares tumbling 13 percent. The bank’s Commerz Real unit wants to sell its special funds business to competitor Internos, Handelsblatt reported, citing unidentified people close to the company.

Hochtief AG (HOT) climbed 1 percent to 50.67 euros, for a fourth day of gains. Germany’s largest construction company said it will buy more shares in Leighton Holdings Ltd. after increasing its stake in the Australian builder to almost 55 percent.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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