January 26, 2016 / 6:07 AM / 2 years ago

German stocks - Factors to watch on January 26

FRANKFURT, Jan 26 (Reuters) - The DAX top-30 index looked set to open 1.4 percent lower on Tuesday, according to premarket data from brokerage Lang & Schwarz at 0711 GMT.

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

ECB

European Central Bank President Mario Draghi promised on Monday to increase inflation, rejecting criticism of the ECB’s loose monetary policy and arguing that sluggish growth in prices was damaging the euro zone economy.

SIEMENS

Indicated 3.1 percent higher

Europe’s biggest industrial group raised its full-year earnings-per-share forecast on Monday after beating market expectations for first-quarter industrial profit, revenue and orders.

Siemens also agreed to buy U.S. engineering software firm CD-adapco for $970 million, it confirmed on Monday, beefing up its core industrial business with the latest in a string of acquisitions in the area.

BAYER

Indicated 1.2 percent lower

The company would look at opportunities to expand its business with soy and wheat seeds through acquisitions, management board member Liam Condon told Handelsblatt in an interview.

DEUTSCHE BANK

Indicated 1.4 percent lower

Moody’s downgraded Deutsche Bank’s long-term debt to Baa1 from A3, with a negative outlook, citing near-term challenges of the lender’s new strategic plan.

Also, financial watchdog Bafin won’t be filing a final report after all on its investigation into the manipulation of benchmark interest rates, Sueddeutsche Zeitung reported, citing unnamed sources.

DEUTSCHE BOERSE

Indicated 1.1 percent lower

Financial services firms must take advantage of rock bottom interest rates to make investments and takeovers and rethink business models, the chief executive of German exchange operator Deutsche Boerse said on Monday.

DEUTSCHE POST DHL

Indicated 2.4 percent lower

The logistics group plans to expand its parcel business in response to e-commerce giant Amazon’s move to set up its own package delivery operations, Chief Executive Frank Appel told daily Bild in an interview.

MUNICH RE

Indicated 1.3 percent lower

Munich Re raised its stake in joint venture Apollo Munich Health Insurance to 48.75 pct from 23.37 percent for 22.3 million euros.

VONOVIA, DEUTSCHE WOHNEN

No indication available for Vonovia

Deutsche Wohnen indicated 2 percent lower

Germany’s biggest residential property company extended the takeover deadline and lowered the acceptance threshold on its offer for Deutsche Wohnen. The threshold has been lowered to 50 percent from 57 percent on an undiluted basis.

TAG IMMOBILIEN

Indicated 1.2 percent lower

TAG said it acquired 1,000 new residential units in Saxony.

JENOPTIK

Indicated 2.5 percent lower

The company said it saw its sales and earnings growing moderately this year, after it reported 2015 earnings before interest and tax of 61 million euros, a tad below average analyst expectations of 62.4 million.

MORPHOSYS

Indicated 2.4 percent higher

The company announced a milestone for the start of Bayer’s Phase 2 trial to support registration of anti-body drug anetumab ravtansine. It did not disclose financial details.

QIAGEN

Indicated 0.7 percent lower

The company said it stood ready to provide its QuantiFERON-TB tuberculosis testing kits to relieve a shortage amid an influx of migrants in Germany.

FERRATUM

Indicated 2.4 percent lower

The financial technology group said it plans to acquire FCB Firmen-Credit Bank GmbH (FCB), which it expects to be significantly earnings accretive by 2017.

GERRY WEBER

Indicated 3.2 percent higher

The fashion house announced plans for a restructuring as its 2014/15 EBIT margin shrank to 8.6 percent from 12.8 percent a year earlier, weighed down by a decline at its wholesale business.

ANNUAL GENERAL MEETINGS

SIEMENS - 3.50 eur/shr dividend proposed

ANALYSTS’ VIEWS

DAIMLER - HSBC cuts to “hold” from “buy”, lowers its target price to 72 euros from 89 euros

DEUTSCHE POST - Credit Suisse cuts to “underperform” from “outperform”, lowers its price target to 20.57 euros from 32.70 euros

SARTORIUS - Berenberg raises the stock to “buy” from “hold”, raises its price target to 250 euros from 200 euros

OVERSEAS STOCK MARKETS

Dow Jones -1.3 pct, S&P 500 -1.6 pct, Nasdaq -1.6 pct at close.

Nikkei -2.4 pct, Shanghai stocks -6.4 pct.

GERMAN ECONOMIC DATA

No economic data scheduled.

EUROPEAN FACTORS TO WATCH

DIARIES

REUTERS TOP NEWS ($1 = 0.9234 euros) (Reporting by Edward Taylor and Maria Sheahan)

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