July 16 (Bloomberg) -- German stocks declined, snapping a six-day winning streak, after a measure of investor confidence missed economists’ forecasts.
Volkswagen AG slipped 0.4 percent as European car sales fell to a two-decade low in June. Deutsche Lufthansa AG, Europe’s second-biggest airline, climbed 0.8 percent as Goldman Sachs Group Inc. upgraded its recommendation on the shares.
The DAX Index retreated 0.4 percent to 8,201.05 at the close of trading in Frankfurt. The measure had climbed 5.5 percent over the previous six days as central banks signaled they won’t withdraw stimulus measures imminently. The broader HDAX Index also dropped 0.4 percent today.
“The general perception about the sentiment data was a slightly negative one,” Chris Beauchamp, a market analyst at IG in London, said in a telephone interview. “The DAX is lagging behind. Bearishness is creeping in, with general worries about Germany’s export markets.”
German investor confidence unexpectedly dropped in July, adding to signs the economy is struggling to gather strength. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations fell to 36.3 from 38.5 in June. Economists had forecast a gain to 40, according to the median of 37 estimates in a Bloomberg survey.
In the U.S., industrial production rose in June by the most in four months. Output at factories, mines and utilities climbed 0.3 percent after being little changed in May, a Federal Reserve report showed today in Washington. The gain matched the median forecast of 86 economists surveyed by Bloomberg. Manufacturing, which makes up 75 percent of total output, increased more than projected.
Volkswagen preferred shares fell 0.4 percent to 167.30 euros. Europe’s biggest automaker posted a 4.4 percent decline in sales in Europe in June, with the biggest drop of 8.9 percent at its Audi division.
Sky Deutschland, the German pay-television provider, retreated 1.5 percent to 5.86 euros as a gauge of media stocks had the second-biggest decline among the 19 industry groups in the Stoxx Europe 600 Index.
Lufthansa climbed 0.8 percent to 15.54 euros as Goldman Sachs upgraded the shares to neutral from sell, citing potential for gains after recent share-price weakness.
Continental AG added 1.4 percent to 111.30 euros after Fitch Ratings upgraded the company’s credit score to BBB from BB, and said the outlook was stable for Europe’s second-largest supplier of auto parts.
The volume of shares changing hands in companies listed on the DAX was 29 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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