German Stocks Drop Amid Growing Tension in Syria
German stocks declined, after three days of gains, as U.S. President Barack Obama’s administration vowed to hold Syria’s government accountable for chemical-weapon attacks.
ThyssenKrupp AG (TKA), the country’s largest steelmaker, lost 2.3 percent after Nomura Holdings Inc. downgraded its recommendation on the shares. Gerry Weber International AG (GWI1), a German clothier, rose 1.8 percent after Bank of America Corp. upgraded its rating on the stock.
The DAX Index (DAX) fell 0.5 percent to 8,394.87 at 9:39 a.m. in Frankfurt. The benchmark gauge has traded within a 2.3 percent range since July 17 as volumes fell and investors awaited more economic reports to assess the strength of the economy. The broader HDAX Index also slipped 0.5 percent today.
U.S. Secretary of State John Kerry yesterday denounced an attack last week on a Damascus suburb as a “cowardly crime” requiring a response against Syrian President Bashar al-Assad’s regime. President Barack Obama “believes there must be accountability for those who would use the world’s most heinous weapons against the world’s most vulnerable people.”
German business confidence probably rose to the highest level in six months in August after the euro area, the nation’s biggest trading partner, emerged from its longest-ever recession.
The Ifo institute’s business climate index, based on a survey of 7,000 executives, climbed to 107 from 106.2 in July, according to the median of 42 forecasts in a Bloomberg News survey. That would be the fourth straight increase and the highest reading since February. Measures of current conditions and expectations also gained, the survey shows.
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