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DAX Retreats After Fairly Strong Start

German stocks are exhibiting weakness an hour before noon on Tuesday, paring early gains as investors react to some disappointing earnings announcements.

Worries about the impact of coronavirus pandemic on the global economy continued to weigh despite recent strong data on manufacturing sector activity in the euro area, the U.S., China and the U.K.

The benchmark DAX, which advanced to 12,768.58 in early trades, gaining more than 120 points in the process, is now down 55 points or 0.44 percent, at 12,591.98. The index ended 2.71 percent up on Monday.

Shares of multinational pharma and life sciences company Bayer AG are down 4 percent, weighed down by weak earnings. The company reported a 9.5 billion euro net loss for the second-quarter as it spent about $10.9 billion in law suits settlements in the U.S. over allegations about its weedkiller causing cancer.

SAP is down 2.8% and Wirecard shares are lower by about 2.1%. Linde, Henkel and Merck are losing 1 to 1.25 percent.

On the other hand, MTU Aero shares are climbing nearly 6.5 percent. Lufthansa is gaining 4.5 percent and Infineon is surging up 4.7 percent, while BMW and Daimler are rising 2.8 percent and 2.2 percent, respectively. Volkswagen is rallying 1.5 percent.

BASF is moving up 3.2 percent and Covestro is rising 2.6 percent. Continental and Deutsche Bank are gaining 1.7 percent and 1.3 percent, respectively. Deutsche Bank and Deutsche Telekom are modestly higher.

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