July 15 (Bloomberg) -- German stocks declined, snapping a seven-day rally for the benchmark DAX Index, after economic reports in the U.S. disappointed investors.
Deutsche Bank AG led declining shares, falling 2.5 percent. Bayerische Motoren Werke AG, the world’s largest luxury-car maker, rose 1.7 percent. Conergy AG soared 4.3 percent after Handelsblatt reported that U.S. financial investor York Capital intends to acquire a “significant” stake in the solar company.
The DAX fell 1 percent to 6,149.36. The gauge has climbed 3.2 percent this year compared with declines of more than 3 percent on the U.K.’s FTSE 100 and France’s CAC 40 benchmark indexes, as UBS AG and Deutsche Bank AG advised buying into the measure due to its holdings of shares more geared to global economic growth. The broader HDAX Index slipped 1 percent today.
Manufacturing in the New York region expanded in July at the slowest pace this year, as measures of orders and sales cooled. A separate report showed manufacturing in the Philadelphia region cooled in July as orders fell for the first time in a year, signaling the expansion is slowing.
“We need to be patient over a difficult summer and be prepared for a much better opportunity later in the year,” said Max King, a London-based investment strategist at Investec Asset Management, which oversees about $55 billion. “We prefer to be cautious in the short term, which means reducing risk exposure.”
Fed officials saw no need to boost stimulus to the economy while trimming their forecasts for growth and noting that risks to the recovery had increased, minutes of their June meeting showed yesterday.
“The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside,” the minutes said. “The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.”
Stocks rallied earlier after JPMorgan & Chase Co., the second-biggest U.S. bank by assets, said profit rose 76 percent, higher than analysts expected as provisions for soured mortgages and credit-card loans declined.
Deutsche Bank AG slipped 2.5 percent to 49.17 euros, its first loss in three days.
BMW rose 1.7 percent to 42.26 euros and Deutsche Telekom AG advanced 1 percent to 10.18 euros.
Conergy surged 4.3 percent to 77.7 euro cents. York Capital plans to purchase loans that banks had granted to Conergy, Handelsblatt said. Converting the loans into shares at a later date would make York Capital a major shareholder in the company, the newspaper said. York Capital declined to comment, according to Handelsblatt.
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