German stocks advanced as a gain by Bayer AG, the country’ biggest drugmaker, offset declines by E.ON AG and RWE AG, the largest utilities.
Bayer increased 1.4 percent and Bayerische Motoren Werke AG gained 1.6 percent as the shares of drugmakers and carmakers climbed across Europe. E.ON and RWE lost 1 percent and 0.6 percent, respectively, after two brokerages cut their price estimates for the utility companies.
The benchmark DAX Index rose 0.2 percent to 6,146.3 at 11:23 a.m. in Frankfurt, snapping the benchmark measure’s longest losing streak since January 2009 after better-than- estimated economic reports from the U.S. failed to ease concern that the recovery was stalling. The measure rallied 4.4 percent in the third quarter as investors speculated that the Federal Reserve and other central banks would step in to provide more stimulus for the ailing global recovery. The broader HDAX Index also added 0.2 percent today.
Europe’s services and manufacturing industries grew at a slower rate in September than a month earlier, London-based Markit Economics said today. A composite index based on a survey of euro-area purchasing managers in both industries declined to 54.1 from 56.2 in August, Markit said. A reading above 50 means that the industries expanded. A measure of new business fell to its lowest level since November.
Bayer rose 1.4 percent to 51.96 euros. BMW jumped 1.6 percent to 48.99 euros. K+S AG, Europe’s largest potash producer, advanced 0.5 percent to 43.59 euros. Mosaic Co., North America’s second-largest fertilizer producer, reported yesterday that it sold 1.7 million tons of potash in the first quarter, compared with about 800,000 tons a year earlier.
E.ON, RWE Slide
E.ON lost 1 percent to 21.16 euros, the shares’ fifth straight decline. Germany’s largest utility was cut to “underweight” from “neutral” at HSBC Holdings Plc. The brokerage cited reduced earnings and dividend forecasts and said that the utility could set medium-term targets at a presentation on Nov. 10 that “ risk disappointing the market.” HSBC maintained its “underweight” rating on RWE, the country’s second-biggest utility, while slashing its price estimate to 46 euros from 53 euros. RWE slid 0.6 percent to 48.97 euros.
Separately, JPMorgan Chase & Co. cut its price estimate for E.ON shares to 27 euros from 28.50 euros, and that of RWE to 55 euros from 62 euros. The bank said that increased electricity generation capacity in Germany would mean lower profits for the two utilities.
To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.
To contact the editor responsible for this story: David Merritt at merritt1@bloomberg.net.
http://jodnet.blogspot.com
Bayer increased 1.4 percent and Bayerische Motoren Werke AG gained 1.6 percent as the shares of drugmakers and carmakers climbed across Europe. E.ON and RWE lost 1 percent and 0.6 percent, respectively, after two brokerages cut their price estimates for the utility companies.
The benchmark DAX Index rose 0.2 percent to 6,146.3 at 11:23 a.m. in Frankfurt, snapping the benchmark measure’s longest losing streak since January 2009 after better-than- estimated economic reports from the U.S. failed to ease concern that the recovery was stalling. The measure rallied 4.4 percent in the third quarter as investors speculated that the Federal Reserve and other central banks would step in to provide more stimulus for the ailing global recovery. The broader HDAX Index also added 0.2 percent today.
Europe’s services and manufacturing industries grew at a slower rate in September than a month earlier, London-based Markit Economics said today. A composite index based on a survey of euro-area purchasing managers in both industries declined to 54.1 from 56.2 in August, Markit said. A reading above 50 means that the industries expanded. A measure of new business fell to its lowest level since November.
Bayer rose 1.4 percent to 51.96 euros. BMW jumped 1.6 percent to 48.99 euros. K+S AG, Europe’s largest potash producer, advanced 0.5 percent to 43.59 euros. Mosaic Co., North America’s second-largest fertilizer producer, reported yesterday that it sold 1.7 million tons of potash in the first quarter, compared with about 800,000 tons a year earlier.
E.ON, RWE Slide
E.ON lost 1 percent to 21.16 euros, the shares’ fifth straight decline. Germany’s largest utility was cut to “underweight” from “neutral” at HSBC Holdings Plc. The brokerage cited reduced earnings and dividend forecasts and said that the utility could set medium-term targets at a presentation on Nov. 10 that “ risk disappointing the market.” HSBC maintained its “underweight” rating on RWE, the country’s second-biggest utility, while slashing its price estimate to 46 euros from 53 euros. RWE slid 0.6 percent to 48.97 euros.
Separately, JPMorgan Chase & Co. cut its price estimate for E.ON shares to 27 euros from 28.50 euros, and that of RWE to 55 euros from 62 euros. The bank said that increased electricity generation capacity in Germany would mean lower profits for the two utilities.
To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.
To contact the editor responsible for this story: David Merritt at merritt1@bloomberg.net.
http://jodnet.blogspot.com
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