April 27, 2009 / 5:45 AM / 10 years ago

German stocks - Factors to watch on April 27

FRANKFURT, April 27 (Reuters) - The DAX top-30 index .GDAXI looked set to open 1.3 percent lower on Monday, according to premarket data from brokers at 0620 GMT. The following are some of the factors that may move German stocks on Monday: (share price indications at 0615 GMT)

BANKING CRISIS

Commerzbank indicated 3.7 percent lower.

A tally compiled by regulators and leaked to German media identifies 816 billion euros in risky assets held by German banks.

The document, which was reported by daily Sueddeutsche Zeitung and magazine Der Spiegel, identified Hypo Real Estate HRXG.DE, Commerzbank (CBKG.DE) and HSH Nordbank [HSH.UL] as the lenders with the biggest exposure. [ID:nLP210732]

DEUTSCHE BANK (DBKGn.DE)

Indicated 2.2 percent higher

The bank is likely to have reached its long-term goal of 25 percent return on equity in the first quarter, newspaper Handelsblatt cited financial sources as saying. [ID:nLQ564047]

Related news [DBKGn.DE-E]

VOLKSWAGEN (VOWG.DE)

Indicated 1.0 percent lower

German daily Bild reported that the German government will not grant guarantees to auto financiers Volkswagen Bank or GMAC out of concern state aid could be used to support the lenders’ parent companies.

Related news [VOWG.DE-E]

MERCK KGaA (MRCG.DE)

Indicated 1.5 percent lower

The drug and chemicals company reported first-quarter operating profit of 198 million euros ($308.3 million), coming in below the 219 million euros expected in a Reuters poll.

[ID:WEA8458] Poll:[ID:nLM141901]

Related news: [MRCG.DE-E]

BMW (BMWG.DE), DAIMLER (DAIGn.DE)

BMW Indicated 1.3 down percent, Daimler down 2.2 percent

The two German premium carmakers plan to expand their cooperation beyond hybrid propulsion into procurement, development and consumer credit, magazine auto motor und sport reported, citing a letter by Daimler’s works council it obtained.

In a separate report, Focus magazine said Daimler’s executive board is considering giving up Formula 1 racing.

Related news [BMWG.DE-E] [DAIGn.DE-E]

RWE (RWEG.DE)

Indicated 0.9 percent lower

The parliament of Dutch province North Brabant, the biggest shareholder of Essent, has voted against RWE’s planned purchase of the Dutch utility. [ID:nLO001954]

Separately, the Sunday Times reported that RWE and Sweden’s Vattenfall have been invited by oil and gas firm Venture Production VPC.L to bid for it as Venture tries to fend off an approach from gas distributor Centrica (CNA.L).

RWE and Vattenfall have been given access to Venture’s books in preparation of offers, the paper added. [ID:nLQ535465]

Related news [RWEG.DE-E]

ARCANDOR AROG.DE

Indicated 0.6 percent lower

The state of North Rhine-Westphalia, home of the retailer’s headquarters, is considering issuing state guarantees to help prop up the financially struggling company, Euro am Sonntag quoted a spokesman of the state economy ministry as saying.

A spokesman for Arcandor AROG.DE denied a report in Euro am Sonntag that the group was encountering difficulties in having a 300 million euro ($395.1 million) loan extended by the Royal Bank of Scotland (RBS.L). [ID:nLO591496]

PORSCHE (PSHG_p.DE)

Indicated 2.8 percent lower

The Emir of Qatar plans to buy a stake in the German sports car maker, possibly shoring up Porsche’s strained finances, Focus magazine reported, citing unspecified sources. [IDn:LP310403]

Related news [PSHG_p.DE-E]

CONTINENTAL (CONG.DE)

Indicated 1.1 percent lower

United Arab Emirates-based industrial and property group MAG said on Sunday it was in “initial” talks with Continental to buy a factory in France but it was too early to talk about striking a deal. [ID:nLQ548870]

Related news [CONG.DE -E]

FRAPORT (FRAG.DE)

Indicated 1.0 percent lower

The decline in passenger figures has slowed in March and that trend continues into April, Fraport CEO-designate Stefan Schulte told Frankfurter Allgemeine Sonntagszeitung in an interview.

In a separate interview, CEO Wilhelm Bender told Focus magazine he was sticking to plans to expand Frankfurt Airport.

Related news [FRAG.DE-E]

ESCADA ESCG.DE

Indicated 8.6 percent higher

The luxury fashion company is in advanced talks with one suitor to sell its Primera subsidiary, which offers mid- to upper-market brands, Frankfurter Allgemeine Sonntagszeitung reported, citing industry sources.

Escada has found a buyer for its clothing retail chain Biba in a company associated with the Herz family, the newspaper added.

Related news [ESCG.DE-E]

HYPO REAL ESTATE (HRE) HRXG.DE

Indicated 0.4 percent higher

Shareholder J.C. Flowers has not decided yet whether to accept the German government’s 1.39 euros-per-share offer for HRE shares, a spokesman for the U.S. investor said.

He rejected as “nonsense” a report in Sueddeutsche Zeitung that Flowers had asked for 8 euros per share in talks with the government.

Separately, Handelsblatt cited people close to Flowers as saying he was preparing to press charges against the government, claiming its nationalisation plans contravene the German constitution and European laws.

Related news [HRXG.DE-E]

KONTRON KBCG.DE

Indicated 0.4 percent lower

The computer group reported first-quarter operating profit of 7.0 million euros on sales of 106.6 million euros.

Related news: [KBCG.DE-E]

EX-DIVIDEND

Lufthansa (LHAG.DE), payout 0.7 eur/shr

OVERSEAS STOCK MARKETS

Dow Jones .DJI +1.5 pct, S&P 500 .SPX +1.7 pct, Nasdaq .IXIC +2.6 pct at close on Friday [ID:nN24448427]

Nikkei .N225 +0.21 pct at close [ID:nLR66005]

GENERAL MOTORS’ (GM.N) OPEL

Fiat FIA.MI has pledged to maintain all four German production sites of General Motors’ (GM.N) Opel unit should the Italian car maker acquire Opel, German magazine Der Spiegel reported, citing a source familiar with Fiat’s plans. Fiat would, however, not commit to keeping output capacity at each Opel site at current levels. [ID:nLQ670881]

German Economy Minister Karl-Theodor zu Guttenberg was quoted by magazine Der Spiegel as saying Austrian-Canadian auto parts supplier Magna MGa.TO is a potential investor in General Motors’ struggling unit Opel. [ID:nLP314160]

Related news [GM.N-DE-E]

MACROECONOMIC DATA

German import prices for March contracted 7.1 percent year-on-year versus the 6.7 percent drop expected by a Reuters poll.

Germany’s new net borrowing will rise in 2009 to a record level that will be well above 50 billion euros but it is still unclear by how much, Finance Minister Peer Steinbrueck said on Saturday. G7TODAY ECONDE

European Factors to watch [WATCH/EU]

Diaries [DE/DIA] [WEU/EWQUITY]

Reuters Top News [ID:nTOPNEWS]

Reporting by Tyler Sitte and Ludwig Burger

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