German Stocks Decline on US Housing Data

German stocks actually reached their highest level in last 2 weeks; however, the same has now declined because of the bigger fall of the housing starts in US, in comparison with expectations. The benchmark gauge DAX index slid by 0.3% and is at 7728.9 now. In 2013, the gauge has so far advanced by 1.5%, thanks to the budget deal agreement of the US policy makers at the start of this year. The broader HDAX Index also went down by 0.2% on today.

According to the Market Analyst of IG, Chris Beauchamp, the housing starts data in US has definitely made investors disheartened. Chris added many actually felt that the housing in US was picking up after a long time, but, the recent results have definitely thrashed their hopes.

Total housing starts in US declined to 890000 annual rate in January, as far as the data released by the Commerce Department is concerned. The estimate was of a drop to a 920000 annual rate; however, the actual was less than forecast. According to many analysts, the slump has resulted because of construction of multifamily units. The permits for future constructions, however, increased.

The 2nd biggest airline in Europe, Lufthansa declined by 6.2% and each of its shares is currently priced at 15 Euros. In an implementation of its cost-savings program, the airline will be suspending the dividend for preserving cash. In 2012, the net income for the company reached 990 million euros, which marks bigger improvement than what it was in 2011: a loss of 13 million Euros. The company, in 2012, benefited mostly from disposal gains. The revenues also increased to 30.1 billion in 2012, as far as preliminary figures are concerned.

The 3rd biggest cement maker in the world, HeidelbergCement posted gains of 1.8% and is at 51.26 Euros per share now. This marks the company’s highest value since May, 2011. On the other hand, the biggest cement maker in the world, Lafarge stated that its 4th quarter earnings will surpass the estimates because of the rising sales in Latin America and Asia.

The 2nd biggest sporting goods maker in the world, Adidas AG, jumped up by 0.7% and each of its shares is now priced at 72.10 Euros. This marks a record high figure for the company. The earnings of the company are predicted to increase in this year.