Germany's DAX Index Advances as Infineon Climbs; Adidas Falls in Frankfurt
German stocks advanced, halting four days of declines for the benchmark DAX Index, as Group of 20 leaders said they will focus on supporting economic growth.
Infineon Technologies AG advanced 2.8 percent after the Financial Times Deutschland reported that Chancellor Angela Merkel may help Russia’s AFK Sistema broker a possible stake purchase. Bayerische Motoren Werke AG followed European carmakers higher, adding more than 2 percent.
The DAX gained 1.4 percent to 6,157.22 in Frankfurt. The gauge has climbed 3.4 percent this year as UBS AG and Deutsche Bank AG advised increasing investments in Germany, Europe’s largest market, because shares in the country are more geared to global growth than to Europe’s most-indebted economies. The DAX is 2.8 percent below its 2010 high reached on April 26, compared with France’s CAC 40 Index and the U.K.’s FTSE 100 Index that remain more than 10 percent below their highest levels in 2010.
“The G-20 summit has some impact on today’s market performance as some investors are relieved that the regulation won’t be as strong as feared,” said Christian Falkner, an analyst at Alpha Wertpapierhandels AG in Frankfurt. “There were a lot of unknowns around the G-20 and now, after the meeting, I guess the market has more clarity.”
Global efforts to tighten banking oversight have gained momentum, U.S. President Barack Obama said following the G-20 meeting this weekend. Group leaders agreed to pursue higher capital requirements for banks once their economic recoveries take root and endorsed targets to cut deficits by at least half by 2013 and stabilize their debt-to-output ratios by 2016.
German unemployment will decline to the lowest in two decades by the end of 2011, Bild-Zeitung said, citing Allianz SE Chief Economist Michael Heise.
Infineon gained 2.8 percent to 5.09 euros.Merkel has agreed to help Russia’s AFK Sistema negotiate with Infineon about purchasing a stake in the German semiconductor maker, Financial Times Deutschland reported. Spokesmen at the two companies said they are not in talks on a stake purchase.
BMW, the world’s biggest maker of luxury cars, rose 2.2 percent to 41.26 euros.
Daimler climbed 2.9 percent to 43.22 euros, ending four days of declines. The carmaker targets 8 percent growth at its bus division this year on demand in Asia and Latin America, Die Welt reported, citing an interview with Hartmut Schick, the unit’s chief.
Aareal Bank AG gained 5.8 percent to 14.70 euros as the German commercial property lender said it will transfer 150 million euros ($184 million) to Germany’s bank rescue fund, Soffin, beginning repayment of the aid earlier than planned.
Delticom AG climbed 3.2 percent to 37.77 euros after raising its target for earnings before interest and taxes in 2010 to 9 percent from 8 percent and sticking to its full-year sales forecast.
Bauer AG gained 3.6 percent to 28.76 euros as Berenberg Bank lifted its recommendation to “buy“ from “hold“ on the construction company.
Q-Cells SE and Solarworld AG lost 5.2 percent to 5.55 euros and 2.3 percent to 9.80 euros, respectively, as Goldman Sachs Group Inc. recommended selling the shares of the solar companies.