June 6 (Bloomberg) -- German stocks retreated, extending five weeks of losses for the benchmark DAX Index, as utilities and Deutsche Bank AG declined.
EON AG and RWE AG slid as plans to close Germany’s nuclear power plants by 2022 moved closer to becoming law. Deutsche Bank followed European banking shares lower. Deutsche Lufthansa AG fell after a trade group cut the industry’s profit forecast.
The benchmark DAX Index declined 0.3 percent to 7,084.57 at the 5:30 p.m. close in Frankfurt. The measure slipped 0.8 percent last week as Moody’s Investors Service raised Greece’s default risk to 50 percent and U.S. factory orders fell the most in almost a year. The broader HDAX Index also dropped 0.3 percent today.
The European Union and the International Monetary Fund last week agreed to pay their next installment to Greece under last year’s bailout, paving the way for an upgraded aid package that includes a “voluntary” role for investors.
“I expect the euro group to agree to additional financing to be provided to Greece under strict conditionality,” said Jean-Claude Juncker, who leads the group of euro-area finance ministers, after meeting with Greek Prime Minister George Papandreou in Luxembourg on June 3. Juncker and Olli Rehn, EU Economic and Monetary Commissioner, are scheduled to speak in Strasbourg, France, today.
Deutsche Bank, Germany’s biggest bank, lost 1.9 percent to 40.12 euros. Banking shares posted the worst performance among 19 industry groups in the benchmark Stoxx Europe 600 Index, falling 1.5 percent.
Banks in the European Union may have to raise 29 billion euros ($42 billion) following this year’s stress tests, according to a survey by Goldman Sachs Group Inc.
EON and RWE, Germany’s largest utilities, declined 2.2 percent to 18.42 euros and 0.8 percent to 37.88 euros, respectively. Chancellor Angela Merkel’s Cabinet backed plans to close Germany’s nuclear power plants by 2022 and the main opposition party signaled its support for the policy, easing the way for the legislation to pass parliament.
Lufthansa, Europe’s second-biggest airline, slipped 1 percent to 14.54 euros, the lowest price in a month. The International Air Transport Association cut its 2011 industry profit forecast by 54 percent because of higher oil prices, political protests in the Middle East and North Africa, and the Japan earthquake.
Bayer AG advanced 1.5 percent to 56.25 euros as a test showed that an experimental prostate-cancer drug the company had licensed from Algeta ASA helped improve patient survival.
--Editor: Christiane Lenzner
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