By Jonathan Morgan - Aug 7, 2013 12:24 PM GMT+0400
German stocks declined for a fourth day after Federal Reserve officials signaled that the U.S. central bank may soon reduce bond purchases.
Beiersdorf AG fell 3.4 percent after the maker of Nivea skin cream reported first-half sales growth at its consumer unit that trailed some analysts’ estimates on sluggish European demand. Hannover Re added 1.4 percent after the world’s fourth-biggest reinsurer reported an increase in second-quarter profit that beat analysts’ forecasts.
The benchmark DAX Index (DAX) fell 0.6 percent to 8,252.85 at 10:22 a.m. in Frankfurt. The equity measure rose 2 percent last week, extending its 2013 advance to 10 percent, as the Fed kept its monthly bond purchases unchanged. The broader HDAX Index dropped 0.5 percent today.
Fed Bank of Chicago President Charles Evans, a proponent of monetary stimulus, said late yesterday he would not rule out a decision to begin reducing bond purchases from September.
“We’ve seen good improvement in the labor market, there’s no question in my mind about that,” Evans said in a meeting with reporters in Chicago. “I’m still wanting to see greater evidence that it’s a sustainable improvement.”
Fed Bank of Dallas President Richard Fisher, one of the most vocal critics of quantitative easing, had said Aug. 5 that policy makers were “closer to execution mode” in considering the right time to begin reducing purchases.
Data today may show industrial output in Germany, Europe’s largest economy, rose 0.3 percent in June after falling 1 percent in May, economists surveyed by Bloomberg predicted before theEconomy Ministry releases the figures at noon in Berlin.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
