July 26 (Bloomberg) -- German stocks declined for a second day, extending a weekly drop for the benchmark DAX Index.
ThyssenKrupp AG tumbled the most in three months amid concern Germany’s largest steelmaker has failed to make progress in talks to sell its plants in the Americas. Deutsche Boerse AG lost 3.7 percent after second-quarter earnings fell 8.2 percent because of lower trading volumes.
The DAX Index slid 0.7 percent to 8,244.91 at the close of trading in Frankfurt. The gauge retreated 1 percent this week as some companies posted worse-than-estimated results. The broader HDAX Index declined 0.6 percent.
“We have seen some kind of fear come back into the market after the unexpectedly poor results and forecasts yesterday,” Christian Schmidt, a market analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said in a telephone interview.
In the U.S., consumer confidence unexpectedly rose, data showed. The Thomson Reuters/University of Michigan final index of U.S. consumer sentiment increased to 85.1 in July from 84.1 in June. The median forecast in a Bloomberg survey called for 84 in the final July gauge after a preliminary reading of 83.9.
ThyssenKrupp lost 2.9 percent to 16.85 euros. Germany’s largest steelmaker has failed to reach a deal with Brazil’s Cia. Siderurgica Nacional SA to sell its plants in the Americas, the Wall Street Journal reported yesterday. ThyssenKrupp said there has been no change in the status of negotiations, which are continuing.
Deutsche Boerse declined 3.7 percent to 52.43 euros. The operator of the Frankfurt stock exchange posted second-quarter net income of 171 million euros ($227 million), compared with 186.2 million euros in the same quarter of 2012.
Siemens AG, Europe’s biggest engineering company, advanced 1.4 percent to 79.68 euros. The company’s supervisory board members will vote on July 31 whether to replace Chief Executive Officer Peter Loescher with industry division head Siegfried Russwurm, according to a report in Manager Magazin, which cited unidentified people familiar with the plan.
The company yesterday cut a profit forecast for the fifth time in Loescher’s six-year tenure.
Deutsche Wohnen AG rose 3.3 percent to 13.03 euros, its biggest increase in one month. UBS AG upgraded Germany’s largest residential landlord by market value to buy from neutral. UBS cited a “significant underperformance” by the stock. Deutsche Wohnen slumped 9.7 percent in June and had lost 3.3 percent this month through yesterday.
Software AG gained 1.8 percent to 24.07 euros as UBS upgraded the shares to buy from neutral. Germany’s second-largest software maker will achieve double-digit growth in third-quarter license revenues, according to UBS.
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