German stocks dropped, paring their monthly gain, as data showed retail sales in Europe’s largest economy unexpectedly fell in June and as investors awaited the outcome of the Federal Reserve’s policy meeting.
ThyssenKrupp AG (TKA) tumbled 4.3 percent after UBS AG advised investors to sell the shares. Deutsche Bank AG (DBK) lost 2.5 percent after Handelsblatt reported Germany’s largest bank may have to raise legal provisions by 1.4 billion euros ($1.9 billion). Volkswagen AG (VOW) rose 1.8 percent as the carmaker posted an unexpected increase in second-quarter profit. HeidelbergCement AG (HEI) advanced 2.4 percent after earnings beat estimates.
The DAX Index (DAX) declined 0.4 percent to 8,239.34 at 9:56 a.m. in Frankfurt. The equity benchmark has climbed 3.5 percent this month and 7.1 percent from a low on June 24. The broader HDAX Index fell 0.3 percent today.
The volume of shares changing hands in DAX-listed companies was 41 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
German retail sales, adjusted for inflation and seasonal swings, dropped 1.5 percent in June from May, when they had risen 0.7 percent, the Federal Statistics Office in Wiesbaden said. Economists had predicted an increase of 0.2 percent last month, according to a Bloomberg News survey. Sales fell 2.8 percent from a year earlier.
Investors awaited the outcome of the Federal Open Market Committee’s two-day policy meeting to gauge the timing of tapering of the Fed’s bond purchases and the shape any further stimulus would take. The central bank will leave its benchmark interest rate at 0.25 percent, according to all economists in a Bloomberg survey.
The European Central Bank and the Bank of England announce policy decisions tomorrow.
A preliminary report at 8:30 a.m. in Washington may show the U.S. economy grew at a 1 percent annual rate in the second quarter. It expanded at a 1.8 percent pace in the first three months of the year.
A separate release at 8:15 a.m. may show companies in the U.S. hired a net 180,000 workers this month, economists projected. The ADP Research Institute’s data had showed that private employers increased their workforce by 188,000 in June.
To contact the reporter on this story: Tom Stoukas in Athens at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Rummer at email@example.com