German Stocks Decline to 6-Week Low

As export figures of Germany experienced a fall, the German stocks declined to the lowest figure in last 6 weeks. Apart from that, the President of the Federal Reserve Bank of St. Louis, James Bullard, gave signals that the central bank of US may reduce the bond purchases, adding further reasons to worry.

The benchmark gauge of Germany, the DAX index has slipped by 0.3% and is currently at 7637.51. As Alcoa began the earning season in US, the DAX index advanced by around 0.8%, however, later it pared the gains. In 2013, the benchmark gauge has increased by 13%, thanks to the favorable US data and the quantitative easing measurements taken by the Central Banks. On the other hand, the broader HDAX Index tumbled by 0.3% on today. The volume of shares changing hands listed under the DAX was 19% below than the average of the last 30 days.

According to the Senior Market Strategist of Kliegel & Hafner AG, Andreas Lipkow, as the earnings season is starting, the stock markets are dragging down. There are 2 reasons behind the decline and those are: statement of James Bullard on possibility of reducing the Quantitative Easing program and the uncertainties surrounding the earnings season of US.

Euro area, the biggest trading partner of Germany is currently struggling to emerge from the recession and as a result, the German exports have experienced decline, more than what was forecasted by the economists for February. Exports, after being adjusted for seasonal changes and working days, experienced a decline of 1.5% from that of January. The data was released by the Federal Statistics Office. The initial prediction was of a drop of 0.3%. On the other hand, the imports experienced a decline of 3.8%.

Among companies, Volkswagen AG declined to the lowest level since last November, as the sales declined. Each share of the same costs 152 Euros now after declining by 2.6%. The largest automaker in Europe released a statement saying that the markets are turning out to be more challenging as it posted a sales decline at the namesake brand in March.

The 2nd largest sporting goods maker in the world, Adidas AG declined by 2.1% and each share is priced at 77.05 Euros now. Adidas, now, has experienced a decline for the 5th straight day. Infineon Technologies AG shares tumbled by 2.4% as well.