German Stocks Drop as SAP Leads Technology Shares Lower
German stocks declined from their highest level since May and the benchmark gauge pared a weekly gain as technology shares fell amid worse-than-estimated earnings from Google Inc. (GOOG) to Microsoft Corp.
SAP AG dropped 1.7 percent also as JPMorgan Chase & Co. cut its rating of the shares. Infineon Technologies AG (IFX) lost 1.7 percent. TUI AG (TUI1) slipped 1.1 percent after Commerzbank AG downgraded its recommendation for the shares.
The benchmark DAX Index (DAX) fell 0.6 percent to 8,289.49 at 9:53 a.m. in Frankfurt, paring its increase this week to 0.9 percent. The measure has climbed 7.7 percent from a low on June 24, as central banks signaled a reduction in stimulus is not imminent. The broader HDAX Index retreated 0.6 percent today.
“We have seen disappointing results from Google and Microsoft,” Soeren Steinert, who helps manage about $24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, said in a telephone interview. “That is the reason Asian technology stocks were weak, and that is the reason why German technology stocks are under pressure today.”
The volume of shares changing hands in companies on the DAX was 23 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
Google, owner of the world’s most popular Internet search engine, reported second-quarter sales and profit that missed analysts’ estimates. Microsoft, the world’s largest software maker, posted fourth-quarter profit that trailed analysts’ forecasts. Both companies reported results after markets closed yesterday.
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