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German Stocks Little Changed at Record as SAP Advances

Oct. 21 (Bloomberg) -- German stocks were little changed after reaching a record last week, as gains in SAP AG offset losses in Deutsche Bank AG.

SAP advanced the most since March 2009 after reporting higher earnings on rising cloud and database revenue and maintaining its full-year forecasts. Deutsche Bank fell 1.5 percent, as a measure of European lenders was among the worst performers of the 19 industry groups on the Stoxx Europe 600 Index. Bayer AG slid the second-most on the German gauge.

The DAX added less than 0.1 percent to 8,867.22 at the close of trading in Frankfurt. The gauge climbed 1.6 percent last week and has gained 3.2 percent this month as U.S. lawmakers reached a last-minute deal to end a fiscal impasse and optimism grew that Janet Yellen, nominated to head the Federal Reserve, won’t rush to withdraw stimulus. The broader HDAX Index also rose 0.1 percent today.

“After the DAX and other German benchmarks reached record highs, the market needs to pause,” Herbert Perus, who helps oversee about $36 billion as head of equities at Raiffeisen Capital Management in Vienna, said by telephone. “Investors are in wait-and-see mode. Investors are waiting for earnings in Germany and Europe which start next week and the week after.”

The Fed will postpone a cut to its monthly bond-buying program until March after a partial shutdown of the U.S. government lasting 16 days trimmed fourth-quarter economic growth by 0.3 percentage point and disrupted the flow of data, according to the median forecast of economists in a Bloomberg survey conducted Oct. 17-18. Policy makers will taper asset purchases to $70 billion from $85 billion, the poll forecast.

Fed Meetings

A previous survey had indicated the U.S. central bank would start trimming stimulus measures at its September gathering. The policy-setting Federal Open Market Committee’s last two meetings this year are scheduled for Oct. 29-30 and Dec. 17-18.

SAP jumped 4.8 percent to 56.06 euros. Third-quarter operating profit adjusted for some items rose 5 percent to 1.3 billion euros ($1.8 billion).

The biggest maker of business-management software also reiterated a July forecast for double-digit percentage growth for software and software-related services revenue this year when excluding currency swings.

Deutsche Bank, Germany’s biggest bank, fell 1.5 percent to 36.54 euros. European lenders declined as a U.S. housing regulator was said to be seeking at least $6 billion from Bank of America Corp. to settle civil claims the firm sold faulty mortgage bonds to government-backed finance companies Fannie Mae and Freddie Mac. Deutsche Bank and UBS AG are among banks also accused of misconduct in the sale of mortgage-backed securities.

Commerzbank AG, Germany’s second-biggest lender, fell 0.5 percent to 9.81 euros.

Bayer, Germany’s largest drugmaker, dropped 1.3 percent to 89.30 euros, for the second-biggest decline on the DAX.

Hugo Boss

Hugo Boss AG slipped 2.1 percent to 93.51 euros. Goldman Sachs Group Inc. downgraded the luxury-clothing maker controlled by buyout firm Permira Advisers LLP to sell from neutral. Hugo Boss is not as well placed as peers to benefit from market growth and so may not achieve its 2015 earnings before interest, taxes, depreciation, and amortization margin target of 25 percent, according to the brokerage.

The volume of shares changing hands in DAX-listed companies was 19 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.

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

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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