German Stocks Fall Before Federal Reserve Holds Meeting
Continental AG (CON) fell 3.8 percent as Schaeffler AG and its holding company Schaeffler Verwaltungs GmbH sold a combined 4 percent stake in Europe’s second-largest car-parts maker. Volkswagen AG (VOW) and Bayerische Motoren Werke AG (BMW) retreated 1.8 percent and 1.1 percent, respectively, as data showed European car sales resumed their decline in August. Deutsche Bank AG (DBK) climbed 0.8 percent as UBS AG upgraded the shares.
The DAX lost 0.2 percent to 8,595.06 at 9:38 a.m. in Frankfurt. The gauge rose 2.8 percent last week amid better-than-expected Chinese economic data and as U.S. President Barack Obama delayed a decision on military action against Syria. The broader HDAX Index also retreated 0.2 percent today.
The Federal Open Market Committee will probably decide in a two-day policy meeting starting today to lower its $85 billion of monthly bond purchases by $10 billion, according to the median response of 34 economists in a Bloomberg News survey earlier this month. That’s down from the forecast of a $20 billion reduction in a July survey.
Investor confidence in Germany, Europe’s largest economy, increased in September to the highest level since March, economists predicted. An index compiled by the ZEW Center for European Economic Research, which aims to predict economic developments six months in advance, probably rose to 45 from 42 in August, economists surveyed by Bloomberg projected before the report at 11 a.m. in Mannheim.
German stocks rose to a record yesterday after Lawrence Summers withdrew from the race to succeed Ben S. Bernanke as Federal Reserve chairman, clearing the way for Janet Yellen, who investors say will favor slower paring of stimulus.
The volume of shares changing hands in DAX-listed companies was 9.2 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
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