FRANKFURT (Thomson Financial) - German shares were mixed in afternoon trade, with the Dax falling and dealers saying disappointing quarterly results from U.S. mortgage giant Fannie Mae has put pressure on financial stocks.
That pressure outweighed gains among export-heavy stock, which saw support from easing oil prices and a weakening euro against the dollar.
An anticipated mixed opening on Wall Street this afternoon is seen offering little help to the local market
At 2:50 p.m., the DAX was down 19.71 points, or 0.30 percent, to 6,523.78, having traded between 6,519.44 and 6,577.50.
The MDAX added 115.54 points, or 1.39 percent, to 8,419.10, while the TecDAX rose 1.44 points, or 0.18 percent, to 780.24.
DAX futures rose 10.00 points, or 0.15 percent, to 6,555.50, while bund futures gained 0.06 points, or 0.05 percent, to 113.63. The euro traded at $1.5058, compared with $1.5127 in London morning deals.
Local dealers said a larger-than-expected second-quarter loss at mortgage finance company Fannie Mae is putting pressure on financials. Fannie Mae reported a $2.3 billion net loss, more than three times greater than the market had been expecting.
The pressure on financials offset earlier gains, buoyed by export-heavy stock which were helped by easing oil prices and a weakening euro adding support.
Leading blue chips lower, Deutsche Postbank lost 1.01 euros, or 2.33 percent, at 42.35. Allianz, parent company of Dresdner Bank, was 1.48 euros, or 1.32 percent, lower at 110.55 and Commerzbank was down 0.17 euros, or 0.78 percent at 21.60.
Utilities also lost ground, largely hurt by easing oil prices. E.ON slid 0.94 euros, or 2.33 percent, to 39.33 and RWE shed 0.46 euros, or 0.61 percent, to 75.52.
Leading a group of ten advancers, BMW was 1.42 euros, or 5.14 percent, stronger at 29.05, one of several auto stocks that saw a boost from the weakening euro, lower raw material costs and Japanese peer Toyota surprising reiteration of its full-year targets. It said a favourable yen exchange rate would offset falling sales over its financial year.
Daimler shares added 1.33 euros, or 3.31 percent, at 41.54, Volkswagen was up 2.12 euros, or 1.08 percent, at 198.82 and Porsche rose 3.52 percent to 94.08.
Chipmaker Infineon enjoyed a 0.250, or 4.57 percent, jump to 5.715, helped by more favourable exchange rates.
Over on the MDAX, airplane exporters EADS and MTU Aero Engines rose, with the weakening euros seen making their products more affordable.
MTU was the top gainer among mid-caps, up 2.71 euros, or 12.94 percent, at 23.65. EADS followed, adding 1.13 euros, or 8.35 percent, at 14.66.
At the other end of the MDAX, Hamburger Hafen slipped 1.00 euros, or 2.42 percent, at 40.40.
Deutz eased 0.08 euros, or 1.69 percent, to 4.64 after Credit Suisse downgraded its stance to 'underperform' from 'neutral' and reduced it target price to 4.5 euros per share from 7.8.
TecDAX-listed Conergy was at the top of its index -- up 0.63 euros, or 6.87 percent, at 9.80 -- after the renewable energy specialist reported second-quarter figures that surprised on the upside. The company reduced its EBIT loss year-on-year.
At the other end, United Internet dipped 0.53 euros, or 4.34 percent, at 11.67. Tyler.Sitte@thomsonreuters.com ts/rw/ts/ms1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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