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Glance-STOCKS NEWS EUROPE-German auto sector outperforms on aid hopes
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09:10GMT 17Nov2008-German auto sector shares outperform on aid hopes
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Shares in German car makers BMW (Xetra: 519000 - news) and Daimler (Xetra: 710000 - news) as well as
automobile equipment suppliers, notably tyre maker Continental (Frankfurt: A0SLLY - news) ,
outperform the broader market, with dealers citing a host of factors -- chief
among those hopes of state aid for the sector from the German and U.S.
governments.
'Opel might get some state help. Maybe there is some hope that others in
trouble would also get help from the state,' a trader says, referring to U.S.
General Motors (NYSE: GM - news) 's German unit Opel. German government leaders are due to
meet GM executives later in the day to discuss aid for Opel.
Another trader points to remarks by U.S. President-elect Barack Obama that
struggling U.S. automakers need a government rescue.
Continental tops the DAX (Xetra: news) leaderboard with a rise of 12.5 percent. A
newspaper report that Schaeffler, which is acquiring just below 50 percent of
the company, is seeking co-investors supports the stock, traders say. They also
talk of a possible short squeeze linked to the takeover.
BMW rises 4.3 percent and Daimler gains 2.9 percent. The DJ Stoxx European
auto index is down 0.4 percent.
Merrill Lynch (NYSE: MER - news) adds BMW to its Europe 1 list.
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