RWE AG slumped 10 percent after Germany’s second-largest utility said it plans to raise about 2.1 billion euros ($2.8 billion) in a share sale to reduce debt. Commerzbank AG (CBK) lost 2.2 percent.
The benchmark DAX slipped 32.26, or 0.5 percent, to 6,073.83 as of 9:31 a.m. in Frankfurt. The gauge has retreated 12 percent this year as the sovereign-debt crisis spread through Europe and investors speculated economic growth will stall in the region next year.
“This raises the political pressure in Germany on Angela Merkel with respect to the costs of closer integration with economically weaker European countries as their borrowing costs rise,” said Michael Hewson, a markets analyst at CMC Markets in London. “This, it would seem, is the price of admission towards closer integration.”
Germany, France and four other euro-area nations may lose their AAA credit ratings, depending on the result of the summit of European Union leaders on Dec. 9, S&P said late yesterday. The ratings company put a total of 15 euro nations on review for possible downgrade. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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