Most German stocks fell, after the benchmark DAX Index rose to its highest level since June 2008 last week, as Commerzbank AG and utilities led declines.
Commerzbank retreated 4.1 percent after profit in the third quarter missed analysts’ estimates. Siemens AG advanced 1.4 percent as Europe’s largest engineering company predicted green technology sales of 40 billion euros ($55.7 billion) by 2014. Adidas AG rose 1.6 percent as the world’s second-largest sporting-goods maker aims to increase sales as much as 50 percent by 2015, Chief Executive Officer Herbert Hainer said.
The DAX slipped 0.1 percent to 6,750.50 at the 5:30 p.m. close in Frankfurt. The measure increased 2.3 percent last week as the U.S. Federal Reserve announced it will buy a further $600 billion of bonds in an attempt to bolster the world’s largest economy. The broader HDAX Index was little changed today.
“With last week’s rally being supported by significant cash injections into the system, the steam is perhaps a little more likely to run out in Europe and the U.S.” Chris Weston, an institutional dealer at IG Markets in Melbourne, said.
Exports from Germany, Europe’s largest economy, rose in September after two months of declines. Sales abroad, adjusted for working days and seasonal changes, increased 3 percent from August, when they fell 0.2 percent, the Federal Statistics Office in Wiesbaden said today. Economists had forecast a 1.5 percent gain, according to the median of 16 estimates in a Bloomberg News survey. Imports dropped 1.5 percent in September.
German Industrial Production
Industrial production in the country unexpectedly declined in September, adding to signs that Europe’s largest economy is losing momentum. Output fell 0.8 percent from August, when it rose 1.5 percent, the Economy Ministry in Berlin said today. Economists had forecast a 0.4 percent gain, the median of 35 estimates in a Bloomberg News survey showed. From a year earlier, production increased 7.9 percent when adjusted for the number of work days.
Commerzbank, Germany’s second-biggest bank, sank 4.1 percent to 6.35 euros after reporting third-quarter net income of 113 million euros, missing the 148.4 million-euro average estimate of 12 analysts surveyed by Bloomberg.
“I would have expected Commerzbank to benefit more from the economic recovery,” said Konrad Becker, an analyst at Merck Finck & Co. in Munich who recommends selling the stock. “The retail bank performed badly.”
E.ON AG lost 1.2 percent to 22.35 euros. Germany’s largest utility may sell its U.K. electricity grid to help pay for a tax that the German government will levy on its nuclear operations from next year, according to two people familiar with the matter.
Separately, baseload power for 2011 in Europe’s biggest electricity market slipped 25 cents, or 0.5 percent, to 46.80 euros ($65.30) a megawatt-hour at 9:55 a.m. Berlin time, its lowest price since April 7, according to broker data compiled by Bloomberg. RWE AG, Germany’s second-largest utility, lost 1.3 percent to 50.62 euros.
Siemens rose 1.4 percent to 85.10 euros, the highest price since March 2008. The engineering company generated total revenue from environmental products of 28 billion euros in the fiscal year through September. Siemens had previously targeted sales of at least 25 billion euros by 2011.
Adidas rallied 1.6 percent to 47.03 euros, the first advance in three days. Revenue will rise to 17 billion euros by 2015, increasing annually by an average of 15 percent, Hainer said today on a conference call with investors. Profit will rise faster than sales, he also said.
Manz Automation AG slipped 3.1 percent to 50.30 euros as the maker of machinery for the solar-panel industry reported a nine-month net loss of 1.6 million euros.
QSC AG surged 2.8 percent to 1.87 euros, the highest price in more than a year. The telecommunications company said third-quarter net income rose to 5.8 million euros from 2.1 million euros, as revenue gained.
Rhoen-Klinikum AG dropped 2.7 percent to 16.17 euros. The operator of rehabilitation and emergency health-care facilities was downgraded to “hold” from “buy” at Commerzbank, which said it cut its “assumptions for external growth in the coming years, as municipalities appear to keep on holding their breath on the sale of assets.”