Most German stocks declined as losses in utility companies overshadowed a rally in auto- industry shares.
E.ON AG and RWE AG, Germany’s largest utilities, fell as UBS AG said it expects an increase in oversupply in power markets. Volkswagen AG advanced 1.7 percent as its China sales rose 39 percent in the first nine months of the year. Daimler AG surged 3.6 percent as UBS upgraded the stock.
The benchmark DAX Index declined less than 0.1 percent to 6,304.59 at 3:28 p.m. in Frankfurt as two stocks fell for each one that gained. The measure advanced 1.3 percent last week as investors speculated that the U.S. Federal Reserve and other central banks will step in to provide more stimulus for the ailing global recovery. The broader HDAX Index also slipped less than 0.1 percent today.
“Market anticipation regarding a new round of Fed quantitative easing has reached a frenzy in recent weeks,” UBS strategist Jeffrey Palma wrote in a report dated yesterday. “There is risk of tactical disappointment given how far expectations have moved.” Still, he added that “we remain positive on the outlook for equities.”
European equity markets gained last week amid speculation that the U.S. Federal Reserve will announce plans to stimulate economic growth at its Nov. 2-3 meeting. The Fed will release minutes from its September gathering after the close of European equity markets today.
Utilities Fall
E.ON and RWE dropped 1.4 percent to 21.2 euros and 2.1 percent to 48 euros, respectively. UBS, which said in a note that it expects “oversupply in power markets to increase in 2011-12, with no improvement until 2013,” kept the both stocks among its “least favorite” in the European industry.
Deutsche Post AG slid 1 percent to 13.07 euros. Morgan Stanley lowered its price estimate on Europe’s biggest mail carrier to 15 euros from 16 euros.
“We think Deutsche Post’s valuation remains reasonable, but we are equal-weight the shares as we remain concerned about structural challenges that DP’s Mail business faces,” the brokerage said in a note.
Sky Deutschland AG sank 3.2 percent to 82.1 euro cents. DZ Bank AG reiterated a “sell” rating on the pay-television operator and cut its price estimate to 92 euro cents from 1.12 euros. The brokerage cited “the low visibility of further developments as well as the ongoing loss-making situation.”
Adidas, Nike
Adidas AG, the world’s second-largest sporting-goods maker, fell 0.8 percent to 46.74 euros. Nike Inc. may become the official apparel maker for the NFL beginning in 2012, CNBC reported, citing unidentified people familiar with the situation.
Daimler rose 3.6 percent to 47.57 euros. UBS lifted its recommendation on the carmaker to “buy” from “neutral,” saying “the stock has lagged both the truck and the premium-car share-price recoveries.”
Volkswagen preferred stock increased 1.7 percent to 92.07 euros. The automaker’s China sales rose 39 percent in the first nine months of the year to 1.48 million vehicles, surpassing record sales in 2009.
Separately, HSBC Holdings Plc increased its price estimate to 124 euros from 115 euros.
Infineon Technologies AG reversed previous losses, rising 1 percent to 5.35 euros as technology stocks were among the best performers in Europe
SAP AG gained 1 percent to 37.24 euros. HSBC increased its price estimate on the world’s biggest maker of business- management software to 40 euros from 38 euros.
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E.ON AG and RWE AG, Germany’s largest utilities, fell as UBS AG said it expects an increase in oversupply in power markets. Volkswagen AG advanced 1.7 percent as its China sales rose 39 percent in the first nine months of the year. Daimler AG surged 3.6 percent as UBS upgraded the stock.
The benchmark DAX Index declined less than 0.1 percent to 6,304.59 at 3:28 p.m. in Frankfurt as two stocks fell for each one that gained. The measure advanced 1.3 percent last week as investors speculated that the U.S. Federal Reserve and other central banks will step in to provide more stimulus for the ailing global recovery. The broader HDAX Index also slipped less than 0.1 percent today.
“Market anticipation regarding a new round of Fed quantitative easing has reached a frenzy in recent weeks,” UBS strategist Jeffrey Palma wrote in a report dated yesterday. “There is risk of tactical disappointment given how far expectations have moved.” Still, he added that “we remain positive on the outlook for equities.”
European equity markets gained last week amid speculation that the U.S. Federal Reserve will announce plans to stimulate economic growth at its Nov. 2-3 meeting. The Fed will release minutes from its September gathering after the close of European equity markets today.
Utilities Fall
E.ON and RWE dropped 1.4 percent to 21.2 euros and 2.1 percent to 48 euros, respectively. UBS, which said in a note that it expects “oversupply in power markets to increase in 2011-12, with no improvement until 2013,” kept the both stocks among its “least favorite” in the European industry.
Deutsche Post AG slid 1 percent to 13.07 euros. Morgan Stanley lowered its price estimate on Europe’s biggest mail carrier to 15 euros from 16 euros.
“We think Deutsche Post’s valuation remains reasonable, but we are equal-weight the shares as we remain concerned about structural challenges that DP’s Mail business faces,” the brokerage said in a note.
Sky Deutschland AG sank 3.2 percent to 82.1 euro cents. DZ Bank AG reiterated a “sell” rating on the pay-television operator and cut its price estimate to 92 euro cents from 1.12 euros. The brokerage cited “the low visibility of further developments as well as the ongoing loss-making situation.”
Adidas, Nike
Adidas AG, the world’s second-largest sporting-goods maker, fell 0.8 percent to 46.74 euros. Nike Inc. may become the official apparel maker for the NFL beginning in 2012, CNBC reported, citing unidentified people familiar with the situation.
Daimler rose 3.6 percent to 47.57 euros. UBS lifted its recommendation on the carmaker to “buy” from “neutral,” saying “the stock has lagged both the truck and the premium-car share-price recoveries.”
Volkswagen preferred stock increased 1.7 percent to 92.07 euros. The automaker’s China sales rose 39 percent in the first nine months of the year to 1.48 million vehicles, surpassing record sales in 2009.
Separately, HSBC Holdings Plc increased its price estimate to 124 euros from 115 euros.
Infineon Technologies AG reversed previous losses, rising 1 percent to 5.35 euros as technology stocks were among the best performers in Europe
SAP AG gained 1 percent to 37.24 euros. HSBC increased its price estimate on the world’s biggest maker of business- management software to 40 euros from 38 euros.
http://jodnet.blogspot.com
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