German Stocks Are Little Changed; DAX Heads for Weekly Tumble
German stocks were little changed, with the DAX Index on course for the biggest weekly drop since June, as a report showed the country’s exports rose to a record in 2012 and European Union leaders prepared to negotiate cuts to the bloc’s budget.
MorphoSys AG gained 1.1 percent after winning a U.S. patent for its antibody platform Ylanthia. Exporters Daimler AG and Adidas AG increased at least 0.5 percent.
The DAX Index slipped 0.1 percent to 7,583.21 at 11:04 a.m. in Frankfurt. The gauge has dropped 3.2 percent this week as Spanish and Italian bond yields climbed amid political uncertainty arising from corruption allegations against Premier Mariano Rajoy and impending Italian elections this month. The HDAX broader Index slipped less than 0.1 percent today.
German exports, adjusted for working days and seasonal changes, increased 0.3 percent in December from a month earlier, when they fell a revised 2.2 percent, the Federal Statistics Office in Wiesbaden said today. Exports rose 3.4 percent in 2012 to a record 1.1 trillion euros ($1.47 trillion), the office said.
European leaders reassembled at 6:30 a.m. today to negotiate the 27-nation bloc’s budget for 2014-2020 at the second day of a summit in Brussels. Leaders may decide on the first-ever cuts in the bloc’s budget, as they consider a pending ceiling of 960 billion euros, down from an original proposal of 1.047 trillion euros and less than the 994 billion euros spent in the current budget cycle.
In China, exports and imports rose more than estimated in a January that had five working days more than last year, the customs administration said. Overseas shipments increased 25 percent from a year earlier, the report showed, compared with economists’ projection of 17.5 percent. Imports climbed 28.8 percent, exceeding a 23.5 percent median estimate in a Bloomberg News survey.
MorphoSys added 37.5 cents to 34.17 euros. The company uses its Ylanthia platform to identify antibodies that may make effective treatments. Antibody drugs, used to treat diseases such as cancer or arthritis, are based on substances found in human immune systems.
Daimler, the world’s third-largest maker of luxury vehicles, gained 0.5 percent to 44.42 euros. Adidas, the world’s second-biggest sporting-goods maker, added 1.4 percent to 68.08 euros.
Software AG, the infrastructure software provider, gained 2.7 percent to 29.23 euros after saying it will spend up to 180 million euros on a share buyback.
RWE AG dropped 1.5 percent to 26.49 euros. HSBC Holdings Plc downgraded the utility to underweight, the equivalent of a sell recommendation, from neutral, citing a possible 10 percent dividend cut in 2014.
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