October 18, 2016 / 5:21 AM / in 9 months

German stocks - Factors to watch on October 18

4 Min Read

FRANKFURT, Oct 18 (Reuters) - The DAX top-30 index looked set to open 0.5 percent higher on Tuesday, according to premarket data from brokerage Lang & Schwarz at 0626 GMT.

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

Allianz

Indicated 0.5 percent higher

The insurer is to invest in used-car sales platform Instamotion Retail GmbH as part of a shift to more digital business, daily Die Welt reported, citing a company spokeswoman.

Basf

Indicated 0.3 percent lower

At least two people died and six were severely injured on Monday in an explosion and fire at chemicals maker BASF's biggest production site in Germany.

BASF said on Tuesday the fire caused by the blast had been put out late on Monday and that two missing persons were still unaccounted for.

Continental

Indicated 3.1 percent lower

The car components supplier trimmed its profit forecast for the year, citing warranty cases and possible expenses for antitrust proceedings as well as supply disruptions following earthquakes in Japan.

Deutsche Bank

Indicated 0.5 percent higher

The bank has agreed to pay $38 million to settle U.S. litigation over allegations it illegally conspired with other banks to fix silver prices at the expense of investors, according to court papers filed on Monday.

Munich Re

Indicated 0.5 percent higher

Munich Re's primary insurer Ergo will launch its new online unit, to be called Nexible, in the autumn of 2017, focusing on auto insurance at first, Ergo chief Markus Riess told Sueddeutsche Zeitung in an interview.

Siemens

Indicated 0.4 percent higher

Siemens will be joining German transport minister Alexander Dobrindt on a trip to Iran, sources said, where the group has long been in negotiations over an order for ICE 3 trains that industry sources say would be worth more than 2 billion euros ($2.24 billion).

Volkswagen

Indicated 0.5 percent higher

U.S. District Judge Charles Breyer is due to hold a hearing on whether to grant final approval to $15.3 billion in settlements related to VW's emissions scandal.

Also, sources told Reuters that VW's Audi will delay technology projects at its German base to cut costs, as it grapples with the Volkswagen group's emissions scandal and multi-million-euro investments in electric cars and autonomous driving.

Missouri sued Volkswagen on Monday, becoming the 17th U.S. state to take legal action against the German automaker over its cheating on diesel emissions.

Separately, Volkswagen works council chief Bernd Osterloh told Sueddeutsche Zeitung that VW should commit to investing in the development and production of batteries for electric cars.

Airbus

No indication available

A proposal by European missiles maker MBDA, part-owned by Airbus, to develop and build a new air defence system for Germany came in billions of euros higher than the previous estimate of 4 billion euros, several people familiar with the matter said.

Index Changes as of Oct. 20:

Tecdax

Out: Aixtron

IN: AIXTRON (tendered shares)

Analysts' Views

HEIDELBERGCEMENT - Berenberg cuts to hold from buy, raises target price to 86 euros from 75 euros

FRAPORT - Deutsche Bank resumes with "hold", target price 53 euros

Overseas Stock Markets

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

Nikkei +0.4 pct, Shanghai stocks +1.3 pct.

Time: 6.42 GMT.

German Economic Data

No economic data scheduled.

European Factors to Watch

Diaries

REUTERS TOP NEWS ($1 = 0.8928 euros) (Reporting by Maria Sheahan and Ludwig Burger)

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