German Stocks Are Little Changed; Deutsche Telekom Gains
German stocks were little changed, after two weeks of losses for the DAX (DAX) Index, as Chancellor Angela Merkel named the cabinet for her third term and investors awaited a Federal Reserve policy meeting starting tomorrow.
Deutsche Telekom AG (DTE) advanced the most in more than two months after a report that Sprint Corp. is considering a bid for its unit T-Mobile US Inc. Aurubis AG (NDA) dropped to a four-month low as Europe’s biggest refined-copper producer posted a full-year loss. Daimler AG and Continental AG slid, following a gauge of European carmakers lower.
The DAX added 0.2 percent to 9,022.21 at 9:41 a.m. in Frankfurt. The equity gauge retreated 1.8 percent last week and 4.1 percent so far this month as better-than-expected U.S. economic reports spurred speculation that the Fed will reduce its monthly bond purchases sooner than forecast. The broader HDAX Index rose 0.1 percent today.
The volume of shares changing hands in DAX-listed companies was 29 percent more than the average of the last 30 days, according to data compiled by Bloomberg.
Merkel begins her third term as German chancellor this week after her Christian Democratic Union, her CSU Bavarian sister party and the Social Democrats reached a coalition agreement.
Following the deal, Merkel presented a cabinet that keeps Finance Minister Wolfgang Schaeuble in his post. The party leaders will sign their coalition accord today and Merkel will be sworn in tomorrow.
In the U.S., the Fed may begin reducing its $85 billion of monthly bond purchases at its Dec. 17-18 meeting, according to 34 percent of economists in a Dec. 6 Bloomberg survey, up from 17 percent in a Nov. 8 poll.
A report at 9:15 a.m. New York time may show that industrial production in the world’s largest economy rose 0.6 percent last month from October, when it fell 0.1 percent, according to the median economist forecast in a Bloomberg survey.
To contact the reporter on this story: Corinne Gretler in Zurich at firstname.lastname@example.org
To contact the editor responsible for this story: Cecile Vannucci at email@example.com