German stocks largely flat ahead of index shakeup

Source: Xinhua| 2019-09-03 16:19:13|Editor: Wu Qin
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BERLIN, Sept. 3 (Xinhua) -- German stocks continued to show little movement at the start of trading on Tuesday, with the benchmark DAX index losing 31.84 points, or 0.27 percent, opening at 11,921.94 points.

The biggest winner among Germany's largest 30 companies at the start of trading was housing company Vonovia, increasing 0.26 percent, followed by carmaker Daimler with 0.24 percent.

As on Monday, shares of German chip manufacturer Infineon were among the top-3 DAX titles at the start of trading, increasing 0.19 percent.

Deutsche Boerse announced on Monday that it would move up to the leading European index, the Euro Stoxx 50. Germany's stock exchange operator had increased profits in the first half of the year and shares are at an all-time high.

Shares of Thyssenkrupp lost 1.22 percent on Tuesday. The German industrial company will lose its place in Germany's top-30 DAX index on Wednesday and was the biggest loser at the start of trading.

After more than 30 years in Germany's DAX index, shares of ThyssenKrupp will be moved from the DAX to the smaller MDAX index on Wednesday.

The Swiss bank Credit Suisse Tuesday updated its valuation of Thyssenkrupp to "Underperform" and set a price target of nine euros (currently around 11 euros). According to analyst Carsten Riek, the restructuring was taking place only slowly and there would be risks for the balance sheet.

"This is an expression of the change in the economy," Andreas Pinkwart (FDP), state minister of economic affairs told Handelsblatt. "Digital companies achieve higher market valuations than traditional industry."

The euro hit a low on Tuesday. At the start of trading on Tuesday, it was traded at 1.0931 U.S. dollars, its lowest level since mid-2017.