BERLIN/FRANKFURT, May 19 (Reuters) - The following are some of the factors that may move German stocks on Tuesday:
France and Germany proposed a 500 billion euro Recovery Fund that would offer grants to European Union regions and sectors hit hardest by the coronavirus pandemic, pushing up the euro and bringing down Italian bond yields.
The Franco-German proposal would bring essential relief to the bloc’s worst-hit nations and demonstrate solidarity, European Central Bank President Christine Lagarde said.
Asian shares jumped and oil extended gains on optimism the global economy would recover quickly following a successful early-stage trial of a coronavirus vaccine, while the euro hovered near a two-week top.
U.S. President Donald Trump threatened to permanently halt funding for the World Health Organization if it did not commit to improvements within 30 days, and to reconsider the membership of the United States in the body.
SoftBank is in talks to sell “a significant portion” of its T-Mobile US stake to controlling shareholder Deutsche Telekom, the Wall Street Journal reported.
Ratings agency Fitch said the coronavirus impact puts pressure on German insurers’ ratings.
Worldwide electric car registrations are set to fall 18% this year, but those of combustion engine cars are set to drop even faster, analysts BNEF said, as the automotive sector is hammered by the coronavirus crisis.
European car registrations data due
The company said it was looking for partners for its steel and warship divisions, singling out just three lines of businesses that will definitely stay within the struggling German industrial icon.
The parent company of the home improvement store chain said it expects significantly higher sales and earnings in the current quarter.
Q1 results due
9M results due
DEUTSCHE BOERSE - 2.90 eur/shr dividend proposed
RHEINMETALL - 2.40 eur/shr dividend proposed
1&1 DRILLISCH - 0.05 eur/shr dividend proposed
KRONES - 0.75 euros/shr dividend
Dow Jones +3.9%, S&P 500 +3.2%, Nasdaq +2.4% at close.
Nikkei +2.0%, Shanghai stocks +0.5%.
Time: 4:28 GMT
* German May ZEW indicator due at 0900 GMT. Economic sentiment seen at +32.0, current conditions at -88.0
* France and Germany are in favour of reforming the European Union’s merger and competition rules so that the bloc can create stronger European champions after the coronavirus crisis, Chancellor Angela Merkel said.
REUTERS TOP NEWS (Reporting by Berlin Speed Desk and Frankfurt Newsroom)