German stocks dropped for the first day in six, with the benchmark DAX (DAX) Index falling from its highest level since May, as investors awaited U.S. data for further evidence of a rebound in the global economy.
RWE AG (RWE) extended yesterday’s loss as analysts cut earnings estimates on the utility and amid concern the stock may exit the Euro Stoxx 50 Index.
The DAX slipped 0.4 percent to 8,407.54 at 10:42 a.m. in Frankfurt. The measure has still rallied 9.3 percent from its low on June 24 as the European Central Bank said interest rates will remain low for an extended period, while gauges of manufacturing and gross domestic product in the region exceeded forecasts. The broader HDAX Index retreated 0.3 percent today.
In the U.S., a Labor Department report at 8:30 a.m. in Washington may show more Americans applied for unemployment benefits last week. Jobless claims in the week ended Aug. 10 increased to 335,000, from 333,000 a week earlier, according to the median forecast of economists surveyed by Bloomberg.
The volume of shares changing hands in DAX-listed companies was 32 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
RWE fell 2.5 percent to 20.83 euros. Exane BNP Paribas cut its 2014 profit estimate for Germany’s second-largest utility by 3 percent and by 12 percent for 2015. Exane analyst Christophe Wakim separately wrote that RWE risks being removed from the Euro Stoxx 50 after a 33 percent drop in its shares this year.
Nordex SE (NDX1) jumped 12 percent to 8.50 euros, its biggest gain since March 11. The maker of wind turbines reported first-half sales and pre-tax earnings that beat analysts’ estimates, and raised its forecasts for full-year sales and profit margins.
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