German Stocks Little Changed as Finance Ministers Meet
German stocks were little changed as European finance chiefs met to prevent Greece from defaulting on its next debt payment.
K+S AG (SDF) led gaining shares on the DAX (DAX) Index. Commerzbank AG (CBK), Germany’s second-biggest bank, also rose. Kloeckner & Co. SE, Europe’s largest independent steel trader, jumped 2.3 percent after Exane BNP Paribas raised its recommendation on the shares. Bayerische Motoren Werke AG (BMW) declined.
The DAX rose 0.1 percent to 7,168.76 at the close of trade in Frankfurt. The gauge dropped 2.7 percent last week on concern that the U.S. will slip back into recession if lawmakers fail to reach a budget compromise and as the European Commission said the euro-area economy will stagnate in 2013. The broader HDAX Index added less than 0.1 percent today.
Finance ministers from the 17-member currency zone met at 5 p.m. in Brussels following the Nov. 8 agreement by Greek lawmakers to make cuts in pensions and benefits. While the ministers are unlikely to finalize an updated aid package, a European official said Nov. 9 that they’ll find a way to overcome a gap in the country’s financing this week.
“Given the fact that there are few economic data releases today, market participants are paying close attention to headlines coming from the meeting in Brussels,” said Stephane Ekolo, chief European strategist at Market Securities, in London.
Greek Prime Minister Antonis Samaras today won a vote on Greece’s 2013 budget, with 167 lawmakers for and 128 against. The nation’s fiscal plan, which forecasts a deficit of 5.2 percent of gross domestic product and a sixth year of contraction, is designed to regain the confidence of its euro area and International Monetary Fund creditors.
Plans to give Greece extra time to meet deficit-cutting targets would open up a financing gap of around 15 billion euros ($19 billion) through 2014 and 17.6 billion euros in the two following years, the country’s creditors said.
The “troika” of the European Commission, European Central Bank and IMF supplied the estimates for tonight’s meeting of euro-area finance ministers in Brussels, according to a document obtained by Bloomberg News.
The report gave a mixed assessment of Greece’s progress from debt to recovery, saluting the governing coalition for “a significant catching-up” while saying that “risks to the program remain very large.”
K+S, Europe’s largest potash producer, increased 2 percent to 35.91 euros, for the biggest gain on the DAX.
Commerzbank advanced the second most, rising 1.2 percent to 1.35 euros.
Kloeckner jumped 2.3 percent to 8.04 euros. Exane raised its recommendation on the shares to outperform, the equivalent of buy, from neutral.
Deutsche Wohnen AG (DWNI) gained 1.3 percent to 14.11 euros. Germany’s largest residential landlord by market value raised its forecast for funds from operations by about 8 percent after adding apartments and collecting more rent.
FFO excluding sales, a measure of a property company’s ability to generate cash, will be at least 65 million euros ($83 million) this year, the company said. That’s up from an August forecast of 60 million euros.
ElringKlinger AG (ZIL2) advanced 2.1 percent to 22.45 euros. DZ Bank AG lifted its rating on the maker of automobile parts to buy from hold.
BMW slipped 0.9 percent to 63.66 euros.
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