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DAX Tumbles On Weak Data, Earnings

German stocks tumbled on Thursday, with a slew of weak earnings updates and disappointing GDP data weighing on markets.

Germany's economy contracted the most on record in the second quarter amid coronavirus pandemic, data from Destatis revealed today.

Gross domestic product fell 10.1 percent sequentially after shrinking 2 percent in the first quarter. This was the largest decline since the records began in 1970. Economists had forecast a decrease of 9 percent.

There was a massive slump in exports and imports of goods and services as well as for household final consumption expenditure and capital formation in machinery and equipment.

On a yearly basis, GDP declined by calendar-adjusted 11.7 percent in the second quarter versus economists' forecast of 11.3 percent. Price-adjusted GDP also declined 11.7 percent.

Meanwhile, data from Federal Employment Agency showed that unemployment decreased by 18,000 in July, confounding expectations for an increase of 43,000.

The jobless rate remained at 6.4 percent versus the expected rate of 6.5 percent.
The benchmark DAX fell 244 points, or 1.9 percent, to 12,580 after closing down 0.1 percent on Wednesday.

Lenders Commerzbank and Deutsche Bank fell about 3 percent, while automakers BMW and Daimler were down over 2 percent.

Volkswagen slumped 5.4 percent after it unveiled a first-half operating loss and cut dividend.

Packaging and bottom machine manufacturer Krones plunged 12 percent after it ended the second quarter of 2020 with a loss.

Wacker Chemie AG declined nearly 2 percent and Fresenius shed 1.5 percent after reporting their quarterly results.

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