Shares of DaimlerChrysler fell more than 5% in Germany on Friday after the auto maker cut its 2006 outlook, while broader European markets ended flat-to-higher after U.S. core CPI data put a lid on rate-increase fears. DaimlerChrysler finished down 5.6% after announcing an expected 2006 operating profit of roughly €5 billion, or $6.4 billion, compared with a market estimate of €6 billion supplied by AFX News. The Daimler news came after Ford Motor, moving to speed up its "Way Forward" plan for turning around its money-losing North American operations, announced plans to make sweeping job cuts. More broadly, the German DAX 30 index closed up 0.5% at 5,937, the French CAC 40 index ended 0.4% higher at 5,144 and the U.K. FTSE 100 index ended the day flat at 5,877. Lower auto and commodity stocks kept a lid on CPI-inspired gains. Martin Slaney, head of spread betting at GFT Global Markets, said that investors had been watching the CPI data to see if there would be any cause for concern on inflation. "Markets now will fully price in no change at the September 20 rate meeting," he said.
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