June 16 (Bloomberg) -- German stocks fell for a second day after Greek Prime Minister George Papandreou said he will call a confidence vote, increasing speculation that the Mediterranean country will default on its debt.
Infineon Technologies AG followed European technology shares lower. Metro AG fell after Sanford C. Bernstein & Co. cut its estimate for the retailer’s shares. Demag Cranes AG rallied 2.3 percent as Terex Corp. agreed to buy the company.
The benchmark DAX Index dropped 0.1 percent to 7,110.2 at the 5:30 p.m. close in Frankfurt after earlier retreating as much as 1.4 percent. The gauge has fallen 5.6 percent from this year’s high on May 2 as investors speculated that the U.S. economic recovery is slowing and that Greece will fail to repay all of its debt. The broader HDAX Index lost 0.2 percent today.
“Risks are accumulating today and momentum on stocks has slowed,” said Emmanuel Bourdeix, head of equities at Natixis Asset Management in Paris. “A solution for Greece should be found in the coming weeks and this should reduce risk aversion.”
Papandreou sought to reassert his authority in a televised address last night hours after police used tear gas to break up protests in central Athens. Thousands remained outside Parliament late into the evening, with police estimating the crowd at 8,000 people at 10:20 p.m. local time.
Stocks pared losses in the final minutes of trading as the International Monetary Fund said it sees a “positive outcome” on Greece at the next Eurogroup meeting. The IMF said it is ready to continue supporting Greece if the economic measures agreed upon as part of a bailout package with the European Union are adopted.
Infineon, Europe’s second-largest maker of semiconductors, retreated declined 1.1 percent to 7.40 euros. A gauge of technology stocks in the benchmark Stoxx Europe 600 Index retreated 1 percent.
Metro, Germany’s largest retailer, sank 2.8 percent to 42.21 euros. Bernstein cut its estimate for the company’s shares to 52 euros from 58 euros.
ProSiebenSat.1 Media AG slid 2.7 percent to 18.21 euros. The private broadcaster’s owners have asked lenders to change the terms on the company’s loans so that it can sell shares without triggering a debt repayment, Reuters reported, citing unidentified people familiar with the matter.
Demag Cranes climbed 2.3 percent to 45.30 euros as Terex agreed to buy the German company for about 963 million euros after raising its offer to 45.50 euros a share from 41.75 euros to win over management. Demag has more than 660,000 of its cranes and hoists installed around the world.
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