German Stocks Tumble on Greek ImpasseJonathan Morgan
German stocks fell for a third day, posting their biggest weekly loss in more than a year, as a coalition partner’s withdrawal from the Greek government renewed concern about political uncertainty in the Mediterranean nation.
SAP lost 2.7 percent, falling to the lowest price in more than seven months, after Oracle Corp., the largest maker of database software, reported quarterly sales that missed estimates. Air Berlin Plc, Europe’s third-biggest discount carrier, climbed 4.1 percent after averting a strike.
The DAX retreated 1.8 percent to 7,789.24 in Frankfurt, its lowest level since April 24. The equity benchmark retreated 4.2 percent this week as investors prepared for a potential paring of stimulus later this year by the Federal Reserve. The gauge erased its advance for the quarter. The broader HDAX Index slid 1.7 percent today.
“Even Greece may have to come back for more money once again,” Ion-Marc Valahu, co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. “The DAX, as much as other equity indexes across the world, is catching up to poor macro-economy fundamentals. All the liquidity poured in by central banks across the world only managed to delay the correction process.”
In Greece, Prime Minister Antonis Samaras lost one of his two coalition partners over his closure of state broadcaster ERT, sparking concern about the government’s stability that sent bonds and shares sliding. The Democratic Left party instructed its ministers to quit Samaras’s government.
The total number of futures outstanding on the DAX rose to 197,319 contracts, after climbing to 204,950 earlier this month, the highest in three months, data compiled by Bloomberg showed.
The volume of shares changing hands in DAX-listed companies was 109 percent higher than the average of the past 30 days, according to the data.
SAP, the largest maker of business-management software, dropped 2.7 percent to 55.10 euros, its lowest price since Oct. 25. Oracle fell in U.S. trading after posting sales below estimates as customers shifted spending to group rivals’ business tools delivered via the Web.
Volkswagen AG, Europe’s biggest carmaker, dropped 2.1 percent to 149.95 euros. Bayerische Motoren Werke AG, the largest maker of luxury cars, fell 3.1 percent to 64.36 euros.
A gauge of automotive-related companies fell the most among the 19 industry groups in the Stoxx Europe 600 Index, dropping 2.7 percent.
Merck KGaA, the German maker of cancer drug Erbitux, fell 3.1 percent to 119.35 euros after Goldman Sachs gave the stock a sell rating in new coverage. Goldman said it is uncertain about factors that may help the company to grow.
Jenoptik AG, the optoelectronics supplier, sank 8.1 percent to 9.25 euros, its biggest drop since Nov. 8. HSBC Holdings Plc downgraded the stock to neutral from overweight, saying the gap between its price and those of its peers has been wiped out because of a recent rally. Jenoptik has gained 29 percent so far this year.
Air Berlin gained 4.1 percent to 2 euros. The Vereinigung Cockpit pilots’ union late yesterday said it abandoned a plan for a strike after the company made an improved wage offer.