January 10, 2017 / 7:29 AM / 8 months ago

German stocks - Factors to watch on January 10

Jan 10 - The DAX top-30 index looked set to open unchanged on Tuesday, according to premarket data from brokerage Lang & Schwarz at 0743 GMT.

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

CHINA

China’s producer prices surged the most in more than five years in December and by more than expected as prices of coal and other raw materials soared, adding to expectations that global inflation may be stronger in 2017. The director of China’s National Development and Reform Commission said on Tuesday China’s economic growth in 2016 was expected to be around 6.7 percent. Passenger vehicle sales in China to retail customers rose 17.1 percent in December from a year earlier, the China Passenger Car Association (CPCA) said on Tuesday.

BASF

Indicated down 0.1 pct

BASF said it would raise the price of some Tinuvin light stabilisers by 15-20 percent from Jan. 11 as a result of raw-material price increases.

DEUTSCHE BANK

Indicated down 0.7 pct

Deutsche Bank Chief Executive John Cryan will not make a definitive strategy announcement with the publication of 2016 figures on Feb. 2 but will wait until the new Basel IV rules are clearer and set a course by the time of the bank’s annual shareholder meeting on May 18, Handelsblatt said, citing financial sources. Even then, drastic steps are not expected but rather detailed efficiency measures, Handelsblatt said.

DEUTSCHE TELEKOM

Indicated down 0.9 pct

The telecoms operator issued a series of bonds worth $3.5 billion with a duration of 3, 5 and 10 years for refinancing purposes, taking advantage of benign market conditions in the U.S. corporate bond market.

AIRBUS

No indication available

Airbus has signed a Memorandum of Understanding with China Airlines to support the development of the airline’s maintenance, engineering and technical training capabilities in Taiwan.

K+S

Indicated down 0.6 pct

The world’s biggest salt producer said profitability of its Salt division remains below 2020 targets, in part because the weather was too mild, FAZ said, quoting an internal K&S newsletter. K&S targets are based on the assumption of “normal winter” weather, FAZ said.

METRO

Indicated down 3.2 pct

Metro, which plans to split into two companies by mid-2017, reported that sales slipped 0.6 percent in the critical Christmas quarter, due to weakness at its Real hypermarkets and sluggish performance in consumer electronics.

BRAAS MONIER

Indicated down 0.1 pct

As a result of the acquisition by Marsella Holdings, current Braas Monier shares traded on the SDAX index will be replaced with a tendered class of Braas Monier share, effective January 12, exchange operator Deutsche Boerse said. At the end of the takeover, Braas shares may be replaced by another company, Boerse said.

SGL CARBON

Indicated up 1 pct

Japan’s Mitsubishi Rayon said it agreed to acquire a U.S. carbon fibre-production plant from SGL Carbon for an undisclosed price. An SGL spokeman said the plant was the smallest of three global carbon fibre factories and the transaction was part of SGL’s effort to consolidate production sites to cut costs and would not constitute a withdrawal from markets.

ANALYSTS’ VIEWS

COMMERZBANK - UBS cuts to “sell” from “neutral”

DEUTSCHE TELEKOM - Goldman Sachs cuts to “neutral”

SIEMENS - UBS raises to “buy” from “neutral”

LANXESS - UBS cuts to “neutral” from “buy”

GRENKE - Deutsche Bank raises to “buy” from “hold”

OVERSEAS STOCK MARKETS

Dow Jones -0.4 pct, S&P 500 -0.4 pct, Nasdaq +0.2 pct at close.

Shanghai stocks -0.3 pct.

Time: 7.47 GMT.

GERMAN ECONOMIC DATA No economic data scheduled.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS (Reporting by Edward Taylor and Georgina Prodhan)

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