By RTT News,
May 28, 2014, 06:23:00 AM EDT
(RTTNews.com) - German stocks are turning in a lackluster performance on Wednesday after recent gains on hopes for ECB action in June. Meanwhile, German unemployment unexpectedly rose in May in adjusted terms, data showed, adding to worries the economy may experience a slowdown in the second quarter.
The number of people out of work increased by around 24,000 from the previous month, after falling by nearly 25,000 in April, the Federal Labor Agency reported. This was the first increase in six months. Economists had forecast a decline of 15,000. The adjusted unemployment rate stayed unchanged at 6.7 percent, in line with expectations.
Another report showed that Germany's import prices continued to decline in April, but at a slower pace than in the previous month. The import price index fell 2.4 percent year-over-year, while export prices dropped 0.8 percent annually in the month.
Trading in a narrow range, the benchmark German DAX is currently up 8 points or 0.08 percent at 9,948. Elsewhere, France's CAC 40 and the U.K.'s FTSE 100 are also up about 0.1 percent each.
Banks are pacing the gainers, with Commerzbank up 0.7 percent and Deutsche Bank rising 0.2 percent. Automakers are mixed, with Daimler rising marginally and Volkswagen shares moving up 0.1 percent, while BMW is down 0.2 percent.
Osram Licht AG is tumbling 3.6 percent. The maker of lamps, lighting systems, and electronic control gears said that it is adjusting its revenue expectation against the background of an accelerated decline in the traditional general illumination business in the current fiscal year.
Evotec AG is rallying 2.1 percent after announcing the acquisition of Euprotec Ltd, a U.K.-based specialist contract research organization for 1.9 million pounds cash and a deferred payment component of 1.25 million in cash.
Bayer shares are moving down 0.4 percent. Bayer HealthCare, a subsidiary of the healthcare and pharmaceuticals giant, said that it has submitted its oral anticoagulant Xarelto (rivaroxaban) to the Japanese Ministry of Health, Labor and Welfare for marketing authorization.
Elsewhere, the Asian markets rose broadly as robust U.S. economic indicators, prospects of some policy action from the European Central Bank at its June 5 meeting and the outcome of Sunday's presidential election in Ukraine bolstered risk appetite. Trading in the U.S. index futures indicate a slightly higher open after solid gains yesterday.
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