BLBG:German Stocks Decline Before Euro Output, U.S. Sales Data
German stocks declined before reports that may show euro-area industrial production fell in January and sales at U.S. retailers climbed.
Infineon Technologies AG (IFX) dropped 1.6 percent after Morgan Stanley downgraded the shares. Commerzbank AG (CBK) retreated to its lowest price in more than three months after Handelsblatt reported that its board will today discuss selling shares. Bayerische Motoren Werke AG led carmakers lower as a gauge of stocks in the automotive industry fell the second most among the 19 industry groups in the Stoxx Europe 600 Index. (SXXP)
The DAX Index (DAX) declined 0.2 percent to 7,946.97 at 10:01 a.m. in Frankfurt. The measure has still rallied 4.4 percent this year, reaching a five-year high last week, amid optimism central banks around the world will continue to support economic growth. The broader HDAX Index slipped 0.2 percent today.
A report at 11 a.m. in Luxembourg may show euro-area industrial production fell 0.1 percent in January, after increasing 0.7 percent in December, economists predicted.
U.S. data due at 8:30 a.m. in Washington may show sales at retailers climbed 0.5 percent in February, for a fourth month of gains, according to the median economist forecast in a Bloomberg Survey. That would follow a 0.1 percent increase in January.
Infineon Technologies dropped 11 cents to 6.67 euros. Morgan Stanley downgraded the stock to underweight, a rating similar to sell, from equal weight, saying margins at Europe’s second-biggest semiconductor maker could take longer to recover to 15 percent than consensus estimates.
Commerzbank retreated 4.1 percent to 1.34 euros, its lowest price since Nov. 28. The supervisory board of Germany’s second- largest lender will discuss the possibility of selling shares at a meeting today, Handelsblatt reported, citing unidentified people. Commerzbank could sell as much as 3 billion euros of shares, according to the report. Commerzbank spokesman Simon Steiner declined to comment.
BMW, the largest maker of luxury cars, lost 1.5 percent to 70.93 euros. Daimler AG, the third-biggest maker of luxury cars, fell 1.1 percent to 45.19 euros. Volkswagen AG, Europe’s biggest carmaker, slipped percent 0.6 percent to 164.95 euros.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
