German Stocks Decline After DAX Reaches All-Time High

German stocks slipped in the last trading day of 2013 after the benchmark DAX Index (DAX) reached an all-time high last week.

Deutsche Telekom AG (DTE) lost 1.1 percent for the biggest decline in the DAX. Hannover Re dropped 0.7 percent after Welt am Sonntag reported the chief executive officer of the world’s third-largest reinsurer expects falling rates in the industry next year. Steelmaker ThyssenKrupp AG (TKA) rose 1.3 percent.

The DAX fell 0.3 percent to 9,565.12 at 11:09 a.m. in Frankfurt. The index has rallied 26 percent this year. The broader HDAX Index (HDAX) dropped 0.3 percent today.

“As the last couple of sessions of 2013 get underway this week, investors look back on a very positive year for risk assets, one that was particularly good for stocks,” David White, trader at Spreadex Ltd. in St. Albans, England, said in and e-mail. “Turning back to this week, volumes are expected to be light into the New Year save for some unforeseen event.”

The DAX rallied this year as the European Central Bank pledged to keep interest rates low for a prolonged period and after the Federal Reserve’s decision to slow the pace of its bond-buying program increased investors’ confidence in the U.S. economic recovery. The DAX jumped 29 percent last year.

U.K. and French markets will be among those open for trading tomorrow on the last day of the year. The Frankfurt Stock Exchange is open tomorrow only for settlement.

The volume of shares changing hands in DAX-listed companies was 27 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net

To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net

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