German Market Loses Early Gains

The German market lost early gains and moved into negative territory in afternoon trading Monday. Friday's reassuring comments from Federal Reserve chairman Ben Bernanke and firm cues from Asia/Pacific failed to sustain optimism.

Crude for October delivery is slipping $0.40 at $74.77 per barrel and gold is adding $0.9 at $1237.5 an ounce.

In economic news, Eurozone economic confidence rose to 101.8 in August from 101.1 in July, a monthly survey from the European Commission showed. The economic sentiment index remained above its long-term average and expected reading of 101.6. Consumer confidence improved to minus 11 in August from minus 14 last month. Confidence in services rose to 7 from prior month's level of 6. Retailers confidence remained unchanged at minus 4.

After an extraordinary policy board meeting, the Bank of Japan announced an expansion to its low-interest lending program, as it bids to stem the rise in the yen. At the same time, the bank also maintained its key interest rate at near-zero.

The DAX opened slightly higher at 5,973 and witnessed turbulent trading. The index dipped into negative territory in the afternoon session and is currently losing 0.34%.

Chipmaker Infineon Technologies, which has decided to sell its wireless solutions unit to Intel Inc., is declining 3.07%, thus topping the percentage losers. Steel giant ThyssenKrupp is retreating 1%.

Truck maker MAN is losing 1.49%, while car manufacturers Volkswagen, Bayerische Motoren Werke and Daimler are losing between 1.25% and 0.33%.

Among chemical companies, Linde is down 0.8% and Basf is slipping 0.5%. Bayer is adding 0.1%. Deutsche Bank is losing 0.4%, while Commerzbank is adding 0.4%.

Utility company E.ON is adding 0.78% and Fresenius Medical Care is gaining 0.42%. Lufthansa is gathering 0.35%. Business software maker SAP and detergent maker Henkel are each up 0.3%.

Overseas, most major Asian markets rallied to end the day notably higher. China's Shanghai Composite Index gained 1.61% and Japan's Nikkei 225 gained 1.76%. India's BSE Sensex ended the day modestly higher by 0.19%. In Australia, All Ordinaries gathered 1.79%.

In the U.S., futures indicate a slightly lower open on Wall Street. In the previous session, the Dow surged 1.7%, the Nasdaq rallied 1.6% and the S&P 500 rose 1.7%.

by RTTNews Staff Writer

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