German stocks were little changed, with the benchmark DAX Index declining for a second week, before next week’s meeting of the U.S. Federal Reserve.
Evotec AG tumbled 12 percent after the drug research and development company cut its revenue goal. RWE AG retreated 1.4 percent after Goldman Sachs Group Inc. downgraded the shares. Medigene AG added 4 percent after getting a patent for a treatment of autoimmune diseases.
The DAX retreated 0.1 percent to 9,006.46 at the close of trading in Frankfurt. The equity gauge has fallen 1.8 percent this week and 4.2 percent this month as better-than-expected U.S. economic reports spurred speculation that the Fed will reduce its monthly bond purchases sooner than forecast. The broader HDAX Index slipped 0.1 percent today.
“The fear of a December taper from the Fed has pushed the market into consolidation over the past two weeks,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail.“The window for a Santa Claus rally is slowly closing. I think we will have to wait for next week to get some sort of rebound.”
About 34 percent of economists predict that the Fed will decide to lower its $85 billion of monthly asset purchases at its Dec. 17-18 meeting, according to a Bloomberg survey on Dec. 6. That compared with 17 percent who forecast tapering at next week’s meeting in a Nov. 8 poll.
Evotec tumbled 12 percent to 3.47 euros after it said certain pre-clinical studies performed by the company’s licensee, Janssen Pharma, didn’t trigger a significant milestone payment this year.
RWE retreated 1.4 percent to 26.15 euros. Goldman Sachs lowered its rating to neutral from buy after the stock’s recent rally. The shares climbed 28 percent from their August low through yesterday.
Medigene added 4 percent to 3.60 euros after being granted an additional patent for RhuDex. The patent will end in 2027, with a potential extension of up to five years, the biopharmaceutical company said in a statement.
SAP AG, the maker of business-management software, gained 0.5 percent to 58.85 euros after HSBC Holdings Plc added it to its list of top 10 holdings in Europe.
The volume of shares changing hands in DAX-listed companies was 14 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.