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DAX Slips Into Red After Rally

German stocks fell modestly on Wednesday after sharp gains in the previous session.

The benchmark DAX was down 30 points or 0.25 percent at 11,962 after rising 1 percent the previous day.

Automakers fell on profit taking after gaining broadly the previous day.

BMW dropped 1.2 percent and Daimler gave up 0.7 percent while Volkswagen tumbled more than 3 percent after winning backing from its workers for a restructuring.

Commerzbank declined 2.4 percent and Deutsche Bank fell nearly 1 percent, weighed down by disappointing earnings results from Raiffeisen Bank International, ABN Amro and Credit Agricole.

Investors were also reacting to media reports suggesting that Italian bank UniCredit has stepped up preparations to bid for Commerzbank.

Leoni, a cable and harnessing manufacturing firm, slumped 10.5 percent after it slipped to loss in the first quarter.

TUI shed nearly 1 percent after its second-quarter net loss widened from last year.

Utility E.ON plunged over 5 percent on going ex-dividend.

Axel Springer rallied 2.4 percent after JP Morgan upgraded its rating on the stock.

In economic releases, Germany's economy expanded for the first time in three quarters, preliminary data from Destatis showed.

Gross domestic product advanced 0.4 percent sequentially in the first quarter, after staying flat in the fourth quarter and contracting 0.2 percent in the third quarter of 2018.

On a yearly basis, GDP climbed working-day adjusted 0.7 percent, which was slightly faster than the 0.6 percent expansion seen in the fourth quarter.

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