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German stocks - Factors to watch on October 4
October 4, 2016 / 5:16 AM / 10 months ago

German stocks - Factors to watch on October 4

FRANKFURT, Oct 4 (Reuters) - The DAX top-30 index looked set to open 0.1 percent higher on Tuesday, according to premarket data from brokerage Lang & Schwarz at 0620 GMT.

The following are some of the factors that may move German stocks:

BREXIT

British Prime Minister Theresa May said on Sunday she would trigger the process to leave the EU by the end of March, offering the first glimpse of a timetable for a divorce that will redefine Britain's ties with its biggest trading partner.

AUTOS

BMW indicated 0.9 percent higher

Daimler indicated 0.1 percent higher

Volkswagen indicated 0.2 percent lower

Camakers reported U.S. monthly deliveries for September. BMW's U.S. group sales were down 5.2 pct, deliveries of Mercedes-Benz vehicles rose 1.7 pct, and Volkswagen fell 7.8 pct.

Separately, Volkswagen confirmed late on Friday it would make $1.21 billion in payments to 652 U.S. brand dealers as part of its $16.5 billion diesel emissions settlement to date.

Also, Volkswagen's luxury carmaker Audi inaugurated a new plant in Mexico on Friday, where it will build the new Audi Q5 SUV.

COMMERZBANK

Indicated 0.2 percent lower

Capital markets day due. The lender last week said it will cut more than a fifth of its workforce and suspend its dividend as it tackles the challenges of low interest rates, weak profits and the shift to online banking.

DEUTSCHE BANK

Indicated 0.9 percent higher

Deutsche Bank is throwing its energies into reaching a settlement before next month's presidential election with U.S. authorities demanding a fine of up to $14 billion for mis-selling mortgage-backed securities.

Separately, German Economy Minister Sigmar Gabriel accused Deutsche Bank on Sunday of blaming speculators for last week's plunge in its share price when the bank had itself made speculation its business.

In addition, a Milan court ordered Banca Monte dei Paschi di Siena, Nomura and Deutsche Bank to stand trial for a string of alleged financial crimes, legal sources said on Saturday.

Also, Bloomberg reported on Sunday that Deutsche Bank is poised to reach an agreement with labour representatives this week that will pave the way to eliminate about 1,000 jobs in its home market as part of Chief Executive Officer John Cryan's cost cuts announced last year, citing people with knowledge of the matter.

HEIDELBERGCEMENT

Indicated 0.4 percent higher

HeidelbergCement owns 96.4 percent of Italcementi following a public tender offer and will exercise its right to buy the rest at the same price of 10.60 euros ($11.89) per share, it said on Sunday.

LINDE

Indicated 0.2 percent lower

The German industrial gases maker has signed a contract to help build a petrochemical facility in Iran, the head of the company's engineering division told Handelsblatt.

SIEMENS

Indicated 0.3 percent higher

The company on Monday said it had signed a contract to supply components for 50 diesel-electric locomotives to Iran, further strengthening its business ties with the country.

SCHAEFFLER

Up 0.5 percent in early Frankfurt trade

IBM will announce on Tuesday a new strategic partnership with German industrial ball bearing giant Schaeffler to supply it with data analytics, cloud services and consulting, in a deal where both firms invest and jointly market services.

EVOTEC

Indicated 1.6 percent higher

Evotec said it had agreed deeper cooperation with Carrick Therapeutics, in which it would invest up to $6 million.

MORPHOSYS

Indicated 11 percent higher

Morphosys moved a step closer to getting its first antibody drug onto the market as its licensee, Johnson & Johnson unit Jenssen, reported positive results from a phase 3 study of psoriasis drug guselkumab.

OSRAM

Up 0.5 percent in early Frankfurt trade

Among the parties interested in Osram are China's San'an and Go Scale Capital, Handelsblatt daily reported on Tuesday, citing sources.

WIRECARD

Indicated 2.6 percent higher

The payment systems provider hiked its 2016 operating profit guidance, citing a positive business development.

AIR BERLIN

Indicated 8.2 percent higher

Air Berlin has reached an agreement on pay and conditions for its cabin crew, helping it as it embarks on a drastic restructuring, it said on Saturday.

Separately, Bild am Sonntag reported that TUI AG plans to divest its German tourist airline TUIfly to a yet to be founded Austrian holding firm, in which TUI would hold less than 25 percent, with Air Berlin shareholder Etihad to own a quarter. The remaining stake would be owned by an Austrian foundation, the paper reported, citing internal documents.

IPO

German real estate company OfficeFirst Immobilien is targeting the sale of shares worth up to 880 million euros in a planned initial public offering (IPO), it said on Friday.

ANALYSTS' VIEWS

LUFTHANSA - Raymond James cuts to "underperform" from "market perform"

SIEMENS - Berenberg raises to "buy" from "hold"

DRILLISCH - Citigroup cuts to "neutral", lifts target price to 44 euros from 42 euros

OVERSEAS STOCK MARKETS

Dow Jones +0.3 pct, S&P 500 +0.3 pct, Nasdaq +0.2 pct at close.

Nikkei +0.8 pct, Shanghai stocks +0.2 pct.

Time: 6.33 GMT.

GERMAN ECONOMIC DATA

No economic data scheduled.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS ($1 = 0.8916 euros) (Reporting by Harro ten Wolde, Georgina Prodhan, Christoph Steitz and Maria Sheahan)

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