German Stocks Decline Before Manufacturing Data

German stocks declined on the first day of trading in 2014, following an annual gain, as investors awaited manufacturing data from Europe’s largest economy and the U.S.

Deutsche Annington Immobilien SE (ANN) advanced 1.8 percent after a report the company may pay a dividend of about 70 euro cents per share. RWE AG (RWE) dropped 2.1 percent after Handelsblatt said the utility will ask shareholders to approve an option for a 10 percent capital increase.

The DAX (DAX) fell 0.3 percent to 9,528.4 at 9:48 a.m. in Frankfurt. The gauge rallied for a second straight year, rising 25 percent in 2013, as central banks around the world left interest rates low. The broader HDAX Index slipped 0.2 percent today.

Final readings today may confirm manufacturing in the euro zone expanded last month at the fastest pace since May 2011, while output in Germany increased for a sixth consecutive month. In the U.S., the Institute for Supply Management’s manufacturing index probably slipped in December from its highest level in more than two years, economists surveyed by Bloomberg projected. The ISM publishes the data at 10 a.m. New York time.

In the U.S., a report released after the close of European markets on Dec. 31 showed confidence among American consumers increased last month. The Conference Board’s index rose to 78.1 from a revised 72 a month earlier, exceeding the median estimate in a Bloomberg survey.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

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

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