Daily Comments
Germany: the week kicks off on an ambiguous note
31.08.2010 8:12:00 Erokhina Anna, Analyst, Global Markets (Finam)
On Monday, August 30, Germany’s benchmarks were a mixed bag. Solar panels manufacturers drove the TecDAX Performance Index higher, while corporate news reports from other sectors proved to be disappointing. Autogiants weakened along with semiconductor maker Infineon Technologies AG, which was undermined by news reports from the M&A segment.
By the final bell, Germany’s key DAX Index edged down 0.65% to 5,912.41, while the TecDAX Performance Index firmed 1.25% to 742.91.
By 16:26 GMT, Brent crude oil futures sank 0.38%, while gold strengthened 0.028%. The euro surrendered 0.697% of its value and traded at 1.266 against the US dollar.
Europe’s largest automaker Volkswagen fell 1.1%, while BMW dipped 1.3% on a statement made by Renault-Nissan’s CEO Carlos Ghosn about weaker-than-estimated US sales.
Semiconductor manufacturer Infineon Technologies AG plunged 3.7% on media reports American Intel Corp. had agreed to purchase Infineon’s wireless radio unit for USD 1.4 bn. The deal will supposedly be closed in the first quarter of 2011.
The TecDAX Performance Index managed to chalk up gains primarily thanks to solar panels makers, specifically Solarworld and SMA Solar Technology, which grew 0.6% each. A government energy adviser said production capacity at solar power plants may exceed that at wind-power turbines within a decade.
