German Stocks Decline as ThyssenKrupp, Suedzucker RetreatJonathan Morgan
German stocks fell, after the DAX Index yesterday rallied the most in eight weeks, as investors weighed an unexpected increase in a U.S. manufacturing index to gauge the outlook for Federal Reserve stimulus.
ThyssenKrupp AG fell 1.7 percent after a report that Germany’s biggest steelmaker may halt the planned sale of its Steel Americas unit. Suedzucker AG, which makes sugar, starch and bakery additives, tumbled 12 percent after Exane BNP Paribas downgraded the shares. LEG Immobilien GmbH rose as JPMorgan Chase & Co. upgraded its recommendation for the stock.
The DAX slid 0.8 percent to 8,180.71 at the close in Frankfurt, after climbing 1.7 percent yesterday. The measure lost 3.7 percent last week on concern the U.S. will take military action against Syria for deadly chemical-weapons attacks. The broader HDAX Index retreated 0.7 percent today.
The Federal Reserve holds a policy meeting on Sept. 17-18 to decide whether to slow the pace of its bond-purchase program. Fed Chairman Ben S. Bernanke has said that the central bank may consider tapering if the employment outlook improves substantially and the economy grows as forecast.
In the U.S., the Institute for Supply Management’s manufacturing index climbed to 55.7 in August from the prior month’s 55.4, the Tempe, Arizona-based group’s report showed today. Fifty is the dividing line between growth and contraction. The median forecast of 85 economists surveyed by Bloomberg called for 54.
ThyssenKrupp retreated 1.7 percent to 15.99 euros after Frankfurter Allgemeine Zeitung said the company was halting the divestment of its Steel Americas business. The steelmaker said that it is still in talks to sell the units.
Suedzucker tumbled 12 percent to 21.84 euros, for its biggest decrease since at least 1998. Exane downgraded the shares to underperform from neutral, projecting a drop in future earnings as the company may have to spend more on restructuring and investments.
LEG Immobilien, Germany’s largest residential landlord by market value, increased 0.8 percent to 41.93 euros after JPMorgan upgraded the shares to overweight, a rating similar to buy, from neutral.