German Stocks Little Changed Amid U.S. Budget Deadlock
German stocks were little changed near a three-week low as investors looked for signs that the U.S. will reopen its government and raise its borrowing limit.
Celesio AG (CLS1) fell from its highest price in more than three years as Commerzbank AG lowered its rating on the drug wholesaler. EON SE and RWE AG (RWE) gained more than 1 percent as a gauge of European utilities rose.
The DAX Index (DAX) declined less than 0.1 percent to 8,552.96 at 10:19 a.m. in Frankfurt, paring a slide of as much as 0.3 percent. The equity benchmark dropped for the past two weeks as a standoff between U.S. lawmakers led to the first shutdown of the federal government in 17 years. The broader HDAX Index retreated 0.1 percent today.
The volume of shares changing hands in DAX-listed companies was 28 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.
Investors turned their attention to corporate earnings as the shutdown delayed the release of some economic data in the U.S. Alcoa Inc. rose in German trading after yesterday posting quarterly earnings that exceeded analysts’ estimates. JPMorgan Chase & Co. and Wells Fargo & Co. also report this week.
The U.S. government began a partial shutdown on Oct. 1 after Congress failed to pass an emergency budget for the new financial year. The deadlock has coincided with the need to raise the federal government’s borrowing authority before Oct. 17, when the Treasury Department predicts it will hit the $16.7 trillion debt ceiling.
Senate Democrats plan to hold a test vote before the end of this week on increasing the debt limit for a year. The measure will need support from at least six Republicans.
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