German stocks gained for a seventh day as Infineon Technologies AG advanced after Intel Corp. reported earnings that topped estimates, offsetting declines by carmakers.
Infineon rose 2.4 percent, the highest close in more than three weeks. Gildemeister AG advanced after Equinet AG lifted its recommendation on the stock. Bayerische Motoren Werke AG and Daimler AG led declines. Biotest AG and CTS Eventim AG both dropped by more than 7 percent.
The DAX Index rose 0.3 percent to 6,209.76 in Frankfurt, having earlier risen as much as 0.6 percent and declined as much as 0.5 percent. The gauge has climbed 8.7 percent following the European Union’s May 10 unveiling of a 750 billion-euro ($921 billion) loan package aimed at stopping the euro region’s weakest members from defaulting. The broader HDAX Index also gained 0.3 percent.
“With Intel’s results, the technology sector has started strongly into the quarterly earnings season and will inspire not only the competition like Infineon, but the entire market,” said Stefan Risse, strategist at CMC Markets in Frankfurt.
Infineon, Europe’s second-biggest chipmaker, gained 2.4 percent to 5.31 euros. Intel, the world’s largest, said third- quarter sales will be $11.6 billion, plus or minus $400 million. Analysts had estimated $10.9 billion on average, according to a Bloomberg survey.
Allianz SE increased 1.8 percent to 87.15 euros after Credit Suisse Group AG raised its recommendation for Germany’s biggest insurer to “outperform” from “neutral.”
Gildemeister AG gained 3.7 percent to 10.60 euros. The German cutting-tool maker founded in 1870 was raised to “buy” from “reduce” at Equinet AG, which said “demand should pick up strongly in coming quarters.”
BMW and Daimler, the world’s biggest makers of luxury cars, lost 1.4 percent to 41.55 euros and 0.6 percent to 43.55 euros, respectively. European carmakers fell 0.7 percent today after posting the best performance among 19 industry groups in the Stoxx Europe 600 Index yesterday when BMW lifted its earnings projections.
CTS Winning Streak Ends
CTS Eventim sank 7.6 percent to 39.10 euros, ending its longest winning streak in a year. The ticketing company was downgraded to “underperform” from “outperform” at Credit Agricole Cheuvreux.
Biotest slumped 12 percent to 29 euros, the stock’s biggest drop since 2002. First-half earnings before interest and taxes fell to 23.7 million euros from 31.2 million euros, the company said, citing a “further downturn in the prices for plasma proteins.” Revenue increased 4 percent, Biotest said.
A report today showed European inflation slowed in June and industrial production increased less than economists forecast in May as the economy struggled to gather strength.
Consumer prices in the 16-member euro region rose 1.4 percent from a year ago after increasing 1.6 percent in May, the European Union statistics office in Luxembourg said today. Industrial production rose 0.9 percent in May from the previous month, a separate report showed today. Economists forecast output to rise 1.2 percent, the median of 27 estimates in a Bloomberg News survey showed.