German Stocks Decline; Automakers, Carl Zeiss Drop in Frankfurt
German stocks slid, after climbing to a 30-month high yesterday, as losses in carmakers outweighed gains in Allianz SE. (ALV)
Porsche SE dropped after gaining for six days. Carl Zeiss Meditec AG (AFX) retreated 2 percent as CA Cheuvreux cut its rating on the maker of medical lasers. Duerr AG (DUE) climbed as Deutsche Bank AG suggested investors to buy shares of the German maker of painting robots for the auto industry. Allianz rose for a second day, following insurers higher in Europe.
The DAX fell for the first time this week, dropping 0.4 percent to 6,975.87 at the 5:30 p.m. close in Frankfurt. The gauge, which is up 17 percent this year, rose to the highest since June 2008 yesterday after President Barack Obama agreed to extend tax cuts. The broader HDAX Index slid 0.3 percent today.
The China Securities Journal reported yesterday that the central bank may raise rates around the time set for the release of November’s inflation data, citing Li Huiyong, an analyst at Shenyin & Wanguo Securities Co.
In Germany, a report showed today that industrial production rose almost three times as much as economists forecast in October, led by demand for investment goods such as machinery.
Production jumped 2.9 percent from September, when it fell a revised 1 percent, the Economy Ministry in Berlin said today. That’s the biggest increase since May. Economists had forecast a gain of 1 percent, the median of 40 estimates in a Bloomberg News survey showed. From a year earlier, output increased 11.7 percent when adjusted for the number of work days, after rising a revised 7.7 percent in September.
Porsche’s preferred shares retreated 5.7 percent to 64.69 euros, dropping for the first day in seven.
“Today we are seeing sellers locking in profits,” said Thomas Laschetti, a trader at Tullett Prebon Ltd. in London.
Bayerische Motoren Werke AG (BMW), the world’s biggest maker of luxury cars, lost 3.3 percent to 61.90 euros. MAN SE, Europe’s third-largest truckmaker, fell 4.5 percent to 92.09 euros.
Carl Zeiss Meditec declined 2 percent to 13.79 euros. Cheuvreux cut its recommendation to “underperform” from “outperform,” citing the stock’s “impressive performance” since mid-September.
Deutsche Wohnen AG (DWNI) slumped 7.1 percent to 9.20 euros. Germany’s second-largest publicly traded residential landlord held preliminary talks with the owners of GSW Immobilien AG to discuss a possible purchase of the Berlin-based real-estate company, three people familiar with the discussions said.
Duerr advanced 3.8 percent to 23.42 euros, a third consecutive gain. Deutsche Bank lifted its recommendation to “buy” from “hold.”
The brokerage said in a note that “we see them strongly benefiting from capacity expansion by OEMs in BRIC markets over the coming years. This and an improved cost base could result in peak earnings by 2012.”
Allianz, Europe’s biggest insurer, rose 2.2 percent to 88.09 euros, as insurance stocks were the best performers in Europe today.
Deutsche Post AG (DPW) increased for the first time this week, rising 1.5 percent to 12.53 euros, as its DHL Express unit is establishing two new air routes from Paris and Frankfurt to the United States, as it expands its overnight Europe-U.S. service, the company said in an e-mailed statement today.
Separately, Merck Finck upgraded the stock to “buy” from “sell.”
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