German Stocks Rise as Exports Increase; Hugo Boss Shares Gain in Frankfurt
German stocks advanced for the first time in three days as the country’s exports unexpectedly rose and Italian Prime Minister Silvio Berlusconi failed to muster an absolute majority in a routine parliamentary ballot.
Deutsche Boerse AG (DB1) and Infineon Technologies AG (IFX) soared more than 3 percent. Hugo Boss AG (BOS) climbed 8.5 percent after the clothier raised its forecast for 2015, saying growth in Asia and e-commerce will boost results.
The benchmark DAX Index (DAX) gained 0.6 percent to 5,961.44 at the close in Frankfurt, after earlier surging as much as 2.7 percent. The gauge has rebounded 18 percent since this year’s low on Sept. 12 amid speculation euro-area leaders will be able to contain the region’s debt crisis. The broader HDAX Index also increased 0.6 percent today.
“Fundamental figures are good and, if political issues are resolved, everything is ready for a year-end rally,” said Andreas Lipkow, an equity trader at MWB Fairtrade Wertpapierhandelsbank AG in Frankfurt. “The vote in Italy is one of the main themes today.”
German exports, adjusted for work days and seasonal changes, rose 0.9 percent in September, the Federal Statistics Office in Wiesbaden said today. Economists forecast a drop of 0.8 percent, according to the median of 14 estimates in a Bloomberg News survey. Imports fell 0.8 percent from the previous month, when they declined 0.1 percent.
Berlusconi failed to muster an absolute majority in ballot on Italy’s 2010 budget, fueling further calls for him to resign as the Mediterranean nation struggles to convince investors it can fund itself.
The 630-seat Chamber of Deputies approved the measure with 308 votes. The lower house had failed to pass the report in an initial ballot last month, prompting a confidence motion won by Berlusconi with 316 votes on Oct. 14. Since then Berlusconi has faced defections that reduced his majority.
“The market would react positively if there’s any kind of change in the government,” Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion globally, said in a phone interview. “It’s not only the change of leader that matters but also the change of politics.”
In Greece, Prime Minister George Papandreou resumed talks with the opposition in Athens as the ruling Pasok party and the rival New Democracy moved closer to naming the premier of a national-unity government to secure outside financing.
Deutsche Boerse, the operator of the Frankfurt exchange, and Infineon, Europe’s second-biggest chipmaker, surged 3.9 percent to 40.63 euros and 3.5 percent to 6.69 euros, respectively.
Hugo Boss preferred shares climbed 8.5 percent to 72.11 euros, the highest price since September. The company expects sales of 3 billion euros in 2015, compared with a previous forecast of 2.5 billion euros. Earnings before interest, taxes, depreciation and amortization excluding special items may reach 750 million euros, compared with an earlier target of 500 million euros.
Aareal Bank AG (ARL) jumped 12 percent to 14.31 euros. The German commercial-property lender that tapped the country’s Soffin rescue fund during the financial crisis said third-quarter profit increased as commission fees advanced.
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