German Confidence Drops; Stocks Fall

123jump.com Staff
13 Oct, 2009
New York City

The index of German confidence declined in September as unemployment stays above expectations and export sales are still struggling. Alstom is in $809 million talks to for tram services in Dubai. The wind turbine division of Siemens in the U.S. won

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – The index of German confidence declined in September as unemployment stays above expectations and export sales are still struggling. Alstom is in $809 million talks to for tram services in Dubai. The wind turbine division of Siemens in the U.S. won €600 million orders.[/R]

Investors and analysts’ confidence in Germany declined in September, surprising most analysts and economists but investors are still looking optimistic according to the latest data released by the ZEW Center for European Economic Research in Mannheim, Germany.

In London FTSE 100 Index closed lower 56.02 or 1.08% to 5,154.15, in Paris CAC 40 Index decreased 44.41 or 1.15% to close at 3,801.39, in Frankfurt DAX index lower 68.92 or 1.19% to close at 5,714.31. In Zurich trading SMI decreased 56.52 or 0.89% to close at 6,321.26.

Gainers & Losers

Air France-KLM the airline decreased 0.5% to €12.55.

Alstom SA rose 0.2% to €51.63 after the maker of high-speed trains and power stations said it is in talks for a five-year contract to maintain a €550 million ($809 million) tram system in Dubai, and is close to signing high-speed rail project deal in Morocco.

Carrefour SA declined 1.3% to €30.65 and Marks & Spencer said it plans to expand in China, India and Eastern Europe.

Commerzbank AG advanced 0.5% to €8.47 after the bank was upgraded to “neutral” from “reduce” at Nomura Holdings Inc.

CR Capital Real Estate AG surged 12.7% to €0.97 after the property company said that it has decided about a share buyback program.

Deutsche Bank AG declined 1.0% to €53.81 after chief executive offered positive outlook at an industry conference in Frankfurt. The largest bank in Germany is also rumored to raise €1 billion by the end of the year.

Monday said that regulators and banks should consider the impact that likely higher capital requirements will have on the income banks can earn and the business they can offer clients.

Deutsche Lufthansa AG the airline dropped 0.8% to €11.84.

Fraport AG fell 0.7% to €36.01 after the operator of Frankfurt airport said it served 4.6 million passengers at its Frankfurt Airport home-base hub, down 4.7% from a year ago.

Heidelberger Druckmaschinen AG the maker of printing presses plunged 10.1% to €5.21.

Intesa Sanpaolo SpA the banking group fell 0.7% to €3.12.

Investor AB an industrial company said third quarter net asset value rose 6.2% to SEK138.1 billion from SEK130 billion a year ago. Net profit in the quarter was SEK12.51 billion or SEK16.39 per diluted share compared to net loss of SEK8.8 billion or SEK11.51 per share a year ago.

Juventus Football Club SpA, an Italy based company that manages the Juventus soccer team rose 0.5% to €0.98.

Medasys SA increased 4% to €1.28 after it reported third quarter sales increased 150% to €4.36 million. For the first nine months sales increased 38% to €13.3 million. The company also reiterated its annual sales outlook of €20 million, an increase of 35% compared to a year ago.

Metro AG the retailer added 1.4% to €38.66.

Octo Technology SA, the IT consulting company increased 11% to €4.26 after it reported third quarter sales increase of 19.6% to €11.33 million. Sales on a comparable basis increased 21.2%. In 2008 sales increased 25% to €12.9 million.

Randstad Holding NV dropped 1.6% to €29.52 after the staffing company was upgraded to “reduce” at Nomura Holdings Inc.

Rheinmetall AG the automotive sector fell 0.1% to €41.63.

Siemens AG declined 1.3% to 65.62 and separately it reported that its wind turbine division in the U.S. won six orders with sales of €900 million. Total of 565 megawatts will be generated with the installation of 250 turbines to be installed in California, Oklahoma, Washington and Wyoming and in Ontario, Canada.
The wind turbine company trails Vestas Systems and GE Wind Energy and Suzlon Energy Ltd.

Solaworld AG declined 2.4% to 16.32 and Q-Cells SE decreased 3% to 13.06 after stocks of alternative companies fell. Energy spokesman for Christian Democrats suggested lowering of tariffs as early as next year. The news was reported by Handelsblatt and Bloomberg.

Telecom Italia SpA fell 0.4% to €1.18.

Wilex AG the biotechnology company decreased 1.9% to €5.63.

DAX Index Movers

Henkel AG & Co. led the decliners in the DAX index of 2.88% followed by losses in Deutsche Boerse AG of 2.68%, in Man SE of 2.23%, in E.ON AG of 1.65%, in Infineon Technologies AG of 1.65%.

ThyssenKrupp AG led gainers in the DAX index with a rise of 1.32% followed by increase in Metro AG of 1.12%, in Salzgitter AG of 0.01%.

CAC-40 Index Movers

Eads NV led the decliners in the CAC-40 index of 3.79% followed by losses in Societe Generale SA of 3.28% in Alcatel Lucent of 3.03%, in Compagnie de Saint-Gobain SA of 3.00%, in Lagardere SCA of 2.82%.

PSA Peugeot Citroen S.A. gainers in the CAC-40 index with a rise of 1.65% followed by gainers in BNP Paribas SA of 0.50%, ArcelorMittal of 0.39%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 19 increased, 80 declined and 3 were unchanged.

Marks and Spencer Group Plc decliners in the FTSE 100 index with a loss of 4.28% followed by losses in Barclays Plc of 3.39%, in Smith & Nephew Plc of 3.18%, in Next Plc of 2.93%, in Prudential Plc of 2.65%.

Smiths Group Plc led gainers in the FTSE 100 index with a rise of 2.16% followed by increase in Lonmin Plc of 1.93%, in British American Tobacco Plc of 1.23%, in Fresnillo Plc of 1.09%, in Old Mutual Plc of 0.82%.