February 3, 2020 / 5:23 AM / 14 days ago

German stocks - Factors to watch on February 3

BERLIN/FRANKFURT, Feb 3 (Reuters) - The following are some of the factors that may move German stocks on Monday:

CORONAVIRUS

Investors erased $420 billion from China’s benchmark stock index, sold the yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year.

German Health Minister Jens Spahn said the Group of Seven (G7) leading industrialised democracies are seeking a unified procedure to tackle the fast-spreading new virus. The number of confirmed cases rose to 10 on the weekend.

BMW

The company has delayed the development of its next generation Mini as it seeks to cut costs and as uncertainty over Britain’s trade relations with the European Union make long-term investment decisions harder.

DAIMLER

The Brazilian unit of Mercedes-Benz expects overall domestic truck sales to rise 18% as the government keeps pushing its reform agenda and the economy rebounds.

Daimler expects to see a strong increase in sales of plug-in hybrids over the next 8 to 10 months, sales chief Britta Seeger told Automobilwoche, partly helped by government incentives. But it was hard to reach climate goals as long as customers preferred SUVs, whose share of overall sales were still rising.

BANKING

The EU’s banking watchdog has launched its toughest stress test of lenders to check on their resilience to very low interest rates, trade tensions and Britain failing to get an EU trade deal after Brexit.

BASF

The company announced that it had closed the acquisition of Solvay’s polyamide business for a purchase price of 1.3 billion euros.

UNIPER

Police broke up a protest by about 100 environmental activists at the site of the yet-to-be commissioned Datteln 4 coal-fired power plant, but the protesters said they planned further demonstrations.

IPO

Buyout firm Carlyle Group has delayed the U.S. initial public offering (IPO) of its German speciality chemicals group Atotech, concerned that the coronavirus outbreak would negatively impact the valuation it could achieve with investors, people familiar with the matter said.

OVERSEAS STOCK MARKETS

Dow Jones -2.1%, S&P 500 -1.8%, Nasdaq -1.6% at close.

Nikkei -1.1%, Shanghai stocks -7.9%.

Time: 5:21 GMT

ECONOMY

* Markit German manufacturing PMI due at 0855 GMT, seen at 45.2

* Germany’s current account surplus remained the world’s largest last year despite trade tensions, the Ifo economic institute will say, in an estimate likely to renew criticism of Chancellor Angela Merkel’s fiscal policies.

DIARIES

REUTERS TOP NEWS (Reporting by Berlin Speed Desk and Frankfurt Newsroom)

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