German shares fell more than three months amid speculation that China would take further measures to cool inflation

German shares fell more than three months amid speculation that China would take further measures to cool inflation and growing concerns about the depth of the fiscal crisis of Europe.

Bayerische Motoren Werke AG and Daimler AG slipped more than 2 percent after the new car registrations in Europe fell for the seventh month. BASF SE, the world's largest maker of chemicals, fell the most since June. Infineon Technologies AG, a maker of chips for the second largest in Europe, rose 4.2 percent in third quarter earnings exceeded analysts' estimates.

The DAX index fell 1.9 percent to 6663.24 at the close of 5:30 pm in Frankfurt, the biggest drop since Aug. 11. HdaX The broader index fell 2 percent. Ireland is in talks with European officials and the International Monetary Fund on a rescue plan to shore up state finances and allow the injection of capital into its banks, said a European official with direct knowledge of the talks.

"Stocks have fallen in Ireland continues to dig in their heels on a bailout, while accelerating inflation in China has market participants worry about another rate hike by the central bank," said Mads Koefoed, a market strategist at Saxo Bank A / S in Copenhagen. "The actions seem a bit stretched at the moment and I'm looking for a correction of 5 percent to 10 in the rest of 2010."

Ireland talks

Ireland bonds fell, reversing a two-day meeting, on concern that European finance ministers could not reach an agreement at a meeting in Brussels which started at 5 pm today. In other parts of Europe, Austria threatened to block the transfer of funds coming to Greece unless the government gets a deficit-cutting plan in accordance with the EU and IMF back on track.

Central Bank Governor Zhou Xiaochuan of China said that China is under "pressure" of capital flows as a state newspaper said that price controls be imposed to cool the fastest inflation in two years. Zhou reiterated the government's objectives of growth 'moderate' credit and greater liquidity management at a forum in Beijing. The China Securities Journal said the price limits are possible for food, citing unidentified sources.

BMW, the world's largest maker of luxury cars, fell 2.6 percent to € 54.62 and Daimler, the second largest, lost 2.8 percent to € 49.47.

car sales in Europe fell 16 percent to 1.06 million vehicles from 1.27 million in October last year, the Brussels-based Association of European Automobile Manufacturers, said today. Ten months of sales decreased 5 percent to 11.6 million euros.

Daimler Recall

Moreover, the unit of Daimler Mercedes-Benz recalled 11,739 vehicles in Japan due to a problem with the steering wheels of cars, according to a filing today with the Ministry of Transport of the nation.

BASF fell 3.9 percent to 54.98 for the biggest drop in the DAX. ThyssenKrupp AG and Salzgitter AG, the largest steel manufacturers in Germany, withdrew 2.8 percent to € 27.22 and 4.7 percent to € 50.80, respectively, as base metals fell on the London Metal Exchange.

In addition, ThyssenKrupp would close one of its blast furnaces of steel in a "worst case" scenario, as a result of Germany's goals of cutting carbon dioxide production, "Manager Magazin" said CEO Ekkehard Schulz, as daily.

Infineon rose 4.2 percent to 6.22 euros, the biggest increase since August. The chip maker said it will pay its dividend for the first time in a decade after reporting net tax revenue for the fourth quarter of 390 million euros. Profit topped the average estimate of 216.2 million euros the benefits of analysts .
Catalis SE rose 2.5 percent to 16.5 cents. The manufacturer of optical testing equipment said its third-quarter operating profit before one-time costs more than doubled to 700,000 euros.

About 72 percent of the DAX 29 companies that have announced quarterly results since 07 October have beaten analyst estimates for earnings per share