German stocks rose, with the benchmark DAX Index extending last week’s gain. E.ON AG and RWE AG led the advance after the government extended the lifespan of their nuclear power plants.
The DAX climbed 0.3 percent to 6,155.04 at the 5:30 p.m. close in Frankfurt. The gauge jumped 3.1 percent last week as reports showed accelerating growth in American and Chinese manufacturing and an increase in U.S. hiring, easing concern that the global economic recovery is faltering. The broader HDAX Index also gained 0.3 percent today.
Trading of DAX stocks was about half the six-month average as U.S. markets were closed for the Labor Day public holiday.
RWE added 1.8 percent to 54.21 euros, the stock’s fourth consecutive gain. E.ON also advanced 1.8 percent to 23.34 euros. Chancellor Angela Merkel’s government agreed to extend the working lives of nuclear power stations owned by utilities including E.ON and RWE so that they can continue to operate beyond their planned closure date in 2022.
“The longer-than-expected lifetime extension, apparently without requirements on higher safety standards, is clearly positive for E.ON and RWE,” Mario Kristl, analyst at DZ Bank AG in Frankfurt, wrote in a note.
Coalition leaders in Berlin agreed to let seven reactors built before 1980 run eight years longer than planned and 10 younger plants to remain open an extra 14 years, said Klaus Breil, the ruling Free Democratic Party’s energy spokesman, who participated in the talks. Germany will use nuclear power as a “bridge technology” to ease the transition to full renewable energy by 2050. The last 17 plants will operate for an additional 12 years on average.
The following stocks also rose or fell in Germany. Stock symbols are in parentheses:
Axel Springer AG (SPR GY) added 1.6 percent to 94.50 euros, the stock’s sixth straight advance. Europe’s largest newspaper publisher will become a member of the MDAX index, Deutsche Boerse AG said.
Bauer AG (B5A GY) retreated 1.6 percent to 33.02 euros, the shares’ first decline in four days. The builder and construction-equipment maker will move from the MDAX to the SDAX index.
Loewe AG (LOE GY) jumped 4.1 percent to 6.45 euros, the stock’s highest price since Aug. 19. Chief Executive Officer Oliver Seidl said the maker of televisions and hi-fi stereos plans to expand slightly this year and in 2011, German newspaper Die Welt reported.
Sky Deutschland AG (SKYD GY) advanced 3.7 percent to 96.4 euro cents. Germany’s biggest pay-television company said it will offer 3-D television in October.
To contact the reporter on this story: Alexis Xydias in London at email@example.com.