July 18, 2017 / 5:00 AM / 5 months ago

German stocks - Factors to watch on July 18

FRANKFURT, July 18 (Reuters) - The following are some of the factors that may move German stocks on Tuesday:

U.S. HEALTHCARE

Asian shares stepped back from more than two-year highs on Tuesday and the dollar extended losses as passage of a U.S. healthcare bill grew doubtful, and as investors bet the Federal Reserve will be more cautious about raising interest rates.

AUTOS

BMW indicated 0.2 percent lower

Daimler indicated 0.2 percent lower

Volkswagen indicated 0.1 percent lower

German environment minister Barbara Hendricks reiterated that it is up to the automotive industry to avert a ban on diesel cars by retrofitting affected vehicles as quickly as possible, at their own cost, according to Handelsblatt.

BMW

Faraday Future, the electric car start-up backed by Chinese entrepreneur Ja Yueting, has hired BMW veteran Ulrich Kranz as chief technology officer, as it pushes to accelerate production of its FF91 luxury electric SUV despite its parent’s financial woes.

DEUTSCHE BANK

Indicated 0.1 percent lower

Deutsche Bank plans to reorganise its wealth management business to focus more on clients with investable assets of at least 2 million euros, Frankfurter Allgemeine Zeitung quoted the business’s co-chief Daniel Kalczynski as saying. It added that 140 of 800 jobs in wealth management would be cut.

Separately, the plans for a sale of its retail bank in Spain are becoming more concrete, according to a report in Handelsblatt. Non-binding bids are due Tuesday, the paper said.

LUFTHANSA

Indicated 1.3 percent higher

The airline increased its profit target for 2017 after a busy summer for bookings that has been boosted by demand on North American routes and a strong Germany economy.

Separately, Handelsblatt quoted CEO Carsten Spohr as reiterating that low-cost unit Eurowings was open to further acquisitions, saying: “Everyone talks to everyone, and everyone talks to us.”

ALSTRIA OFFICE REIT

Indicated 2.0 percent higher

The group said the German state of Baden-Wuerttemberg had signed a new 10-year lease for an 8,400 square metre property in Stuttgart.

Separately, Goldman Sachs starts with buy, 14.5 euro target price

ZALANDO

Indicated 3.0 percent lower

The online fashion portal said it would launch a membership program for 19 euros per year in four German cities and issued its updated trading statement for the first half of the year.

SOFTWARE AG

Indicated 4.2 percent higher

Software AG hiked its full-year profit guidance as it reported second-quarter results that exceeded expectations thanks to demand for high-margin maintenance services at its digital business.

METRO

The company’s Real hypermarket chain is not up for sale, Metro Chief Executive Olaf Koch told Sueddeutsche Zeitung in an interview. He said the chain planned to invest to modernise around 50 of its 280 outlets in Germany.

ANALYSTS’ VIEWS

LINDE - Barclays cuts price target to 175 euros from 176 euros

BEIERSDORF - UBS raises to neutral from sell, raises price target to 93 euros from 83 euros

PROSIEBENSAT 1 - HSBC cuts target price to 39 euros from 45 euros; rating buy

SALZGITTER - Jeffries raises target price to 39 euros; rating hold

SARTORIUS - Deutsche Bank cuts to hold from buy

THYSSENKRUPP - Jeffries raises target price to 32; rating buy

VOLKSWAGEN - HSBC raises target price to 180 euros from 175 euros; rating buy

OVERSEAS STOCK MARKETS

Dow Jones unchanged, S&P 500 unchanged, Nasdaq unchanged at close.

Nikkei -0.6 pct, Shanghai stocks -0.1 pct.

Time: 6.10 GMT.

GERMAN ECONOMIC DATA

German ZEW sentiment index for July due at 0900 GMT. Economic Sentiment seen at 18.0 points vs 18.6, Current Conditions unchanged at 88.0.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS (Reporting by Maria Sheahan and Tom Sims)

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