German Stocks Little Changed After Report on U.S. GoodsTom Stoukas
German stocks were little changed, as gains in K+S AG and Telefonica Deutschland Holding AG offset a report showing orders for U.S. durable goods fell in July more than forecast.
K+S, Europe’s biggest potash producer, jumped the most on the benchmark index. Telefonica Deutschland Holding AG rose 2.9 percent after Royal KPN NV won the support of minority shareholder America Movil SAB for the sale of KPN’s German business to Telefonica. HeidelbergCement AG fell 2.1 percent, following European construction stocks lower.
The DAX Index added 0.2 percent to 8,435.15 at the close of trading in Frankfurt. The benchmark gained 0.3 percent last week and has rallied 9.7 percent since June 24 as the European Central Bank said its interest rates will remain low for an extended period of time. The broader HDAX Index also rose 0.2 percent today.
“Equity investors are taking today’s market with some trepidation, while weighing up sluggish economic growth and equities’ strong performance year-to-date,” Daniel Weston, a portfolio manager at Aimed Capital GmbH in Munich, wrote in an e-mail.
The volume of shares changing hands in DAX-listed companies was 51 percent lower than the average of the last 30 days, according to data compiled by Bloomberg. Markets in London are closed for a holiday.
In the U.S., bookings for goods meant to last at least three years decreased 7.3 percent, the most since August 2012, after a 3.9 percent gain in June, the Commerce Department said today. The median forecast of economists surveyed by Bloomberg called for a 4 percent drop. Orders waned for aircraft and capital goods such as computers and electrical equipment.
K+S rose 4.3 percent to 19.26 euros. OAO Uralkali Chief Executive Officer Vladislav Baumgertner is being held in Belarus after the world’s largest potash producer pulled out of a joint venture that controlled more than 40 percent of exports.
Baumgertner has been charged with abuse of office as chairman of Belarusian Potash Co., the trading venture that Russia’s Uralkali and Belaruskali set up in 2005, Pavel Traulko, spokesman for Belarusian investigators, said by phone.
Telefonica Deutschland, controlled by Spain’s largest carrier and owner of the O2 brand in Germany, added 2.9 percent to 5.22 euros. KPN, the Dutch phone carrier partly owned by Carlos Slim, won the billionaire’s support for the sale of its German unit for more than $11 billion. Slim’s America Movil SAB has given an “irrevocable commitment” to vote in favor of the sale to Telefonica Deutschland, KPN said today.
Stroeer Media AG, Germany’s largest outdoor media advertising company, rose 2.4 percent to 11.15 euros, its highest price since May 2012.
The acquisition of a 91 percent stake in Munich-based adscale GmbH, a provider of an online ad exchange, in December, and Berlin-based mobile advertising company RAdcarpet from Servtag GmbH in May, is boosting growth potential, said Marcus Silbe, a Frankfurt-based analyst at Close Brothers Seydler Research AG.
HeidelbergCement, the world’s third-largest maker of cement, slid 2.1 percent to 53.62 euros. A measure of construction companies posted the second-worst performance of the 19 industry groups on the Stoxx Europe 600 Index.
Rheinmetall AG, the armored vehicle maker, fell 0.5 percent to 37.97 euros, paring earlier losses of as much as 2 percent. Rheinmetall and Atlas Elektronik GmbH, a unit jointly owned by ThyssenKrupp AG and European Aeronautic Defence and Space Co., were raided as part of a German probe into allegations of bribery by employees.
The suspects are being investigated over payments to Greek officials from 1998 to 2011 to win contracts for submarine equipment, Frank Passade, a spokesman for the prosecutors’ office in Bremen, Germany, said in an interview today.