For 2nd day on a row, German stocks have seen advancement. The benchmark index of Germany, DAX increased by 0.2% and is at 7343.41 currently. The broader HDAX index also surged by 0.1%. The benchmark index experienced the lowest value on 5th June, 2012 and since then has rallied more than 23%. The approval of European Central Bank for unlimited bond buying program and the decision of Euro zone Finance Ministers to ease the Greece aid terms have helped German stocks hugely. The stocks received further push as John Boehner; the Speaker of the House in US expressed his optimism on continuation of negotiations with President Obama.
The major drug and chemical manufacturing company of Germany, Bayer AG stocks surged by 1%. It is priced at 70.05 Euros per share currently. Continental AG, the 2nd largest auto-part maker in Europe has also added 1.4% to its share prices. Continental AG shares are on a 2 month high as per share price is 82.47 Euros currently. However, the share prices of ThyssenKrupp AG plummeted by 2.5% as recent reports suggested that its sale of the Steel Americas Unit may only fetch it around $1.29 billion, much under the expectations.
As a result of Franz Haniel & Cie. GmbH selling 100 million Euros of stock that it had in the drug wholesaler Celesio AG, the share prices of the latter dropped by 2.6%. Metro AG also had similar fate. The share prices dropped by 2.7% and is at 21.32 Euros currently. The German investment company Haniel will reduce its current stake of 34.2% to 30% in the largest retailer of Germany Metro. Haniel is also planning to raise around 150 million Euros. They want to cut the net borrowing below 2 billion Euros by selling the non-strategic assets.
The share prices of Deutsche Bank AG plummeted by 1.9%. A trustee backed by HSBC Bank USA recently sued Deutsche bank for indirectly supporting fraudulent borrowers and that may have affected the share prices. The case is currently pending in the Federal Court in Manhattan. Incidentally, the Head of Compliance of the bank, Stephan Leithner announced that the bank has kept reserves aside to cope up with possible financial damages. The 2nd largest lender of Germany, Commerzbank AG also lost 1.3% in its share prices. The current per share price is 1.35 Euros.