Most German Stocks Fall After 11th Straight DAX Record
The DAX slipped 0.2 percent to 8,451.83 at 9:49 a.m. in Germany, snapping an 11-day rally. Twenty one shares in the gauge fell, while nine rose. The measure has increased 11 percent this year as central banks around the world maintained monetary stimulus. The broader HDAX Index lost 0.2 percent today.
“We’re still benefiting from this central-bank ’put’ environment, but that is going to end and it will end first in the U.S.,” William De Vijlder, chief investment officer at BNP Paribas Investment Partners, which oversees $653 billion, told Mark Barton on Bloomberg Television. “Every word of the Fed governors is being looked at with a looking glass. When they do start to contemplate reducing quantitative easing, market nervousness will inevitably go up.”
The volume of shares changing hands in companies listed on the DAX was 16 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
The Bank of Japan affirmed a plan to double the monetary base over two years. The central bank said it will expand the supply of money in the economy by 60 to 70 trillion yen ($683 billion) a year, as pledged in April.
Federal Reserve Chairman Ben S. Bernanke testifies on the U.S. economic outlook from 10:00 a.m. in Washington before a Joint Economic Committee of Congress. The Federal Open Market Committee also releases the minutes of its April 30-May 1 meeting late today. Policy makers said after their last meeting that they will keep buying $85 billion of bonds every month, while standing ready to raise or lower purchases as conditions evolve.
Purchases of previously owned U.S. houses rose to a 4.99 million annualized rate last month, the fastest pace since November 2009, from 4.92 million in March, according to the median forecast in a Bloomberg survey. The National Association of Realtors releases the data at 10 a.m. Washington time.
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