German stocks advanced, rebounding from a three-day drop, after Reuters reported a jump in Chinese exports and Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank will take “necessary” steps to aid recovery.
BASF SE gained 2.6 percent as the chemical maker signaled it’s committed to China, saying there are “good opportunities under exploration” in the country. Bayerische Motoren Werke AG climbed 3.3 percent as the world’s largest luxury-car maker said sales increased almost 11 percent in May. Symrise AG rallied 5.9 percent after Morgan Stanley advised investors to buy the stock.
The benchmark DAX Index rose 2 percent to 5,984.75 in Frankfurt, following three days of losses. The gauge is still 5.5 percent below its April 26 high on concern the sovereign- debt crisis in Europe will hold back economic growth. The broader HDAX Index increased 2.1 percent today.
China’s consumer prices gained 3.1 percent from a year earlier, exports jumped about 50 percent and new loans totaled 630 billion yuan ($92.3 billion), Reuters reported, citing three unnamed people who said a government official stated the figures at an investor conference. The central bank and statistics and customs bureaus declined to comment when reached by Bloomberg.
The median estimate of 32 economists was for a 3 percent gain in consumer prices. Forecasts indicated 600 billion yuan of new loans and a 32 percent increase in overseas shipments.
Bernanke said the Fed will act as needed to aid financial stability and economic growth after restarting emergency currency-swaps to help contain Europe’s debt crisis.
“Our ongoing international cooperation sends an important signal to global financial markets that we will take the actions necessary to ensure stability and continued economic recovery,” Bernanke said in testimony to a House Budget Committee hearing.
BASF, the world’s biggest chemical maker, gained 2.6 percent to 44.20 euros. Global demand for petrochemicals, including that in China, is “stronger than expected,” BASF board member Martin Brudermueller said in a media briefing in Shanghai today. A lot of production capacity shut because of the global economic slowdown is now back on, he said.
BMW climbed 3.3 percent to 38.91 euros, erasing yesterday’s losses. Deliveries increased to 120,843 cars and sport-utility vehicles from 109,049 a year earlier, the Munich-based automaker said today in a statement. Five-month sales gained 13 percent to 552,864 vehicles.
Infineon Technologies AG, Europe’s second-largest maker of semiconductors, jumped 3.3 percent to 4.57 euros. Texas Instruments Inc., the second-biggest U.S. semiconductor maker, said sales and profit will be at the upper end of earlier targets, buoyed by demand for industrial machinery.
Aixtron AG rallied 7.4 percent to 20.54 euros. The maker of equipment for the semiconductor industry was upgraded to “hold” from “sell” at Hauck & Aufhaeuser KGaA.
Adidas AG, the world’s second-largest sporting-goods maker, rose 2.1 percent to 42.60 euros. Chief Executive Officer Herbert Hainer said “there is a good chance” for the company to expand its market leadership as a soccer sports brand with the World Cup tournament and that he is “more than satisfied” with sales numbers so far, the Financial Times reported.
K+S AG increased 2.1 percent to 37.56 euros. Europe’s biggest potash producer is considering selling its Compo home- and-garden fertilizer unit to focus on potash and salt.
Compo, which makes fertilizers, plant-protection products and potting soil, operates in a very fragmented, highly competitive market that will require consolidation, the company said today. The division had sales of about 400 million euros ($477 million) last year and employs 1,100 people worldwide.
Symrise surged 5.9 percent to 17.53 euros after the world’s fourth-largest maker of scents and flavors was raised to “overweight” from “equal-weight” at Morgan Stanley.