German Stocks Retreat as Car and Steel Producers Lead Declines

Strategic Insights -

The German stock market continued its downward trend, recording its biggest weekly loss in over a month, as concerns about the impact of Europe's sovereign debt crisis mount. The benchmark DAX Index fell 0.7 percent to 6,070.6, with the broader HDAX Index also dropping 0.7 percent. The decline comes as investors worry about the potential consequences of the crisis on Germany's economy.

Key Takeaways:

  • German stocks retreated for the fourth day, with the DAX Index falling 0.7 percent to 6,070.6, marking the biggest weekly loss in over a month.
  • Car manufacturers Daimler AG and Volkswagen AG led the declines, falling over 2 percent and 2.8 percent, respectively, after UBS AG downgraded their shares to neutral.
  • ThyssenKrupp AG, Germany's largest steelmaker, dropped 1.6 percent to 21.30 euros, while Salzgitter AG lost 2 percent to 50.4 euros, tracking European basic-resource shares, which fell 2.3 percent.
  • Beiersdorf AG surged 3.4 percent after Nomura Holdings Inc. recommended the company's shares, citing its sales growth slowdown as a direct consequence of its strategy shift.
  • Suedzucker AG jumped 3.4 percent to 15 euros after confirming its full-year forecast, following a 149 million euros ($184 million) increase in first-quarter operating profit.
  • The German stock market has lost 4.1 percent since its high on April 26, with concerns about the impact of the sovereign debt crisis on Germany's economy driving the decline.

Statistics:

  • DAX Index fell 0.7 percent to 6,070.6.
  • DAX Index decline for the week stands at 2.4 percent.
  • DAX Index has lost 4.1 percent from this year's high on April 26.
  • European basic-resource shares fell 2.3 percent.
  • ThyssenKrupp AG fell 1.6 percent to 21.30 euros.
  • Salzgitter AG lost 2 percent to 50.4 euros.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info
  • Albawaba.com