German Stocks Are Little Changed After Two-Day DeclineTrista Kelley
German stocks were little changed after posting their biggest two-day drop in three weeks.
Volkswagen AG climbed 3.6 percent after Sanford C. Bernstein & Co. raised its rating on the stock. Daimler AG rose after saying profit will increase this year. ThyssenKrupp AG advanced 1.5 percent. Deutsche Wohnen AG declined after Morgan Stanley cut its rating on the residential landlord.
The DAX added 0.2 percent to 9,506.35 at the close in Frankfurt. The benchmark gauge lost 2.1 percent in the first two days of the week, pushed lower by tension in Ukraine and a selloff in the best-performing stocks from Asia to Europe and the U.S. The broader HDAX Index added 0.2 today.
“You’ve seen some fairly heavy falls over the past few days,” said Michael Ingram, a market strategist at BGC Brokers LP in London. “It’s been a bit of a roller coaster really. Autos is one of the sectors where earnings forecasts have held up pretty well.”
Car companies led gains in the Stoxx Europe 600 Index today, with the industry gauge advancing 1.5 percent.
Volkswagen added 3.6 percent to 196.70 euros. Bernstein raised the stock to outperform, similar to a buy, from market perform. The brokerage cited the automaker’s exposure to the recovering European market.
Porsche Automobil Holding SE jumped 4.4 percent to 78.92 euros after Bernstein raised it to outperform from market perform.
Daimler advanced 0.8 percent to 70.43 euros. Chief Executive Officer Dieter Zetsche said new Mercedes-Benz models will enable the world’s third-largest maker of luxury cars to beat competitors’ sales growth and increase operating profit significantly in 2014. The CEO spoke at a shareholders meeting in Berlin.
ThyssenKrupp rose 1.5 percent to 20.26 euros. The World Steel Association said demand for the metal will increase 3.1 percent this year and 3.3 percent in 2015.
Deutsche Wohnen retreated 0.8 percent to 15.52 euros. Morgan Stanley cut its rating to equal weight from overweight, meaning it no longer recommends buying the stock. The bank said Deutsche Wohnen’s competitors are cheaper. The stock reached its highest price since November 2007 on April 4 and traded at 19.4 times estimated earnings yesterday, compared with 14.8 for LEG Immobilien AG, data compiled by Bloomberg show.
Kepler Cheuvreux SA also lowered its rating to hold from buy, saying the stock is close to the broker’s price estimate of 16.50 euros.