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German stocks - Factors to watch on October 10
October 10, 2016 / 5:16 AM / in a year

German stocks - Factors to watch on October 10

FRANKFURT, Oct 10 (Reuters) - The DAX top-30 index looked set to open 0.2 percent higher on Monday, according to premarket data from brokerage Lang & Schwarz at 0607 GMT.

The following are some of the factors that may move German stocks:

GERMAN SECURITY

German police said on Monday they had captured a man suspected of planning a bomb attack who had slipped through their grasp during a raid two days ago.

U.S. ELECTIONS

A defiant Donald Trump on Sunday attacked former President Bill Clinton for his treatment of women and vowed, if he won the White House, to put Hillary Clinton in jail for operating a private email server while U.S. secretary of state.

ECB

Euro zone inflation could approach the ECB’s target by late 2018 or early 2019 and so far there is no evidence that super-easy monetary policy is leading to asset price bubbles, European Central Bank President Mario Draghi said on Saturday.

BASF

Indicated 0.1 percent higher

The chemicals company plans to step up checks of its suppliers after problems with the quality of some materials caused a delay to the ramp-up of its TDI plant in Germany, daily Mannheimer Morgen reported.

BAYER

Indicated 0.3 percent higher

Bayer will not seek to impose genetically modified plants on European consumers in the wake of its merger with Monsanto, Chief Executive Werner Baumann told Sueddeutsche Zeitung.

DEUTSCHE BANK

Indicated 3.6 percent lower

Deutsche Bank has secured support from its largest shareholder and more German lawmakers as it grapples with a confidence crisis following U.S. authorities’ demands for up to $14 billion to settle allegations it mis-sold mortgage-backed securities.

The lender continues to cut the size of its 46 trillion euros derivatives book, which is not as risky as investors may believe, Chief Risk Officer Stuart Lewis told German weekly paper Welt am Sonntag.

The group also issued its first US dollar-denominated bond in five months on Friday when its raised US$3bn through a five-year issue following reverse enquiry from investors, a person close to the deal told IFR.

Deutsche Bank’s problems stem from an over-reliance on investment banking, Mohamed El-Erian, the former co-chief executive of Allianz investment division Pimco told Handelsblatt.

DEUTSCHE POST

Indicated 0.7 percent higher

Deutsche Post DHL remains committed to Britain despite its vote to leave the European Union and so far it has been business as usual for its customers, the company’s finance chief told Reuters.

LINDE

Indicated 0.2 percent higher

Linde, the world’s biggest industrial gases group by revenue, plans to cut costs and may and may close some sites abroad after failing to merge with U.S. rival Praxair, German weekly Spiegel reported.

RWE, INNOGY

RWE indicated 0.8 percent higher

Innogy indicated 0.3 percent higher

Innogy is eyeing the United States market to expand its renewable energy and electric car charging business, its chief executive told a German weekly Welt am Sonntag.

VOLKSWAGEN

Indicated 0.4 percent higher

Chief Executive Matthias Mueller had no knowledge of the carmaker’s diesel emissions cheating scandal, Germany’s Bild am Sonntag newspaper said, citing a report by Jones Day, the lawfirm tasked with investigating the scandal.

VW is recalling about 334,000 Volkswagen and Audi brand vehicles in the United States and Canada in three separate recalls, each due to fuel leaks but with different causes, U.S. safety regulators and VW said on Friday.

Also, a U.S. congresswoman from California said this week in a letter that a settlement with U.S. regulators gives Volkswagen too much authority over how to spend $2 billion on electric vehicle technology.

HOCHTIEF

Indicated 0.3 percent higher

Australian unit CIMIC Group Ltd said on Monday it will offer A$525 million ($398 million) for Australian rival UGL Ltd, seizing on the target company’s share-price collapse amid a mining downturn.

SAF HOLLAND

Indicated 0.1 percent lower

The company said it had appointed Matthias Heiden as its new finance chief effective March 1, 2017, succeeding Wilfried Trepels.

ANALYSTS’ VIEWS

RWE - HSBC raises to “h0old” from “reduce”, raises target price to 15 euros from 13.50 euros

INNOGY - HSBC starts with “hold” rating, 39 euros price target

OVERSEAS STOCK MARKETS

Dow Jones -0.2 pct, S&P 500 -0.3 pct, Nasdaq -0.3 pct at close.

Japanese markets closed, Shanghai stocks +1.1 pct.

Time: 6.10 GMT.

GERMAN ECONOMIC DATA

German exports rebounded more than expected in August, posting their biggest rise in more than six years and dispelling fears that Europe’s biggest economy is heading for a slowdown.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS ($1 = 1.3187 Australian dollars) (Reporting by Jonathan Gould, Edward Taylor and Maria Sheahan)

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