Breaking News

TransAsia Air Flight Crashed in Taiwan, Official Confirms
Tweet TWEET

German Stocks Advance, Extending a Five-Year High

German stocks advanced, extending their highest level in more than five years, as Henkel AG and Lanxess AG (LXS) climbed.

Henkel rose for a second day as the maker of Loctite glue and Persil detergent predicted that sales will grow and profitability will increase. Axel Springer AG (SPR) fell the most in almost five months as Europe’s largest newspaper publisher forecast lower profit for this year.

The DAX Index (DAX) rallied 1.2 percent to 7,963.38 at 10:31 a.m. in Frankfurt. The equity benchmark has gained 4.6 percent this year as U.S. lawmakers agreed on a budget avoiding automatic fiscal changes that had threatened to push the world’s biggest economy into a recession. The broader HDAX Index rose 1.1 percent today.

“The current situation on the trading floor is affected by a strong momentum due to the immense liquidity, which must be invested,” Roger Peeters, chief executive officer at Close Brothers Seydler Research in Frankfurt, wrote in e-mailed comments. “The technical situation is leading to further interest by investors with a low exposure or short sellers, who will be squeezed.”

U.S. stocks rallied yesterday, pushing the Dow Jones Industrial Average (INDU) 126 points higher to close at an all time high of 14,253.77.

Henkel Gains

Henkel added 2 percent to 70.06 euros after predicting that sales will grow as much as 5 percent in 2013. The company’s earnings before interest and taxes as a percentage of sales will rise to as much as 14.5 percent this year, more than the 14.1 percent margin that Henkel reported today for 2012.

Lanxess increased 4.6 percent to 68.10 euros, posting the biggest gain on a gauge of European chemical makers.

Axel Springer slid 4.2 percent to 34.76 euros as the publisher of Bild and Die Welt forecast profit will fall this year because of spending to accelerate its shift to digital publications. Earnings before interest, taxes, depreciation and amortization will probably drop by less than 10 percent, Berlin- based Axel Springer said. Analysts had projected Ebitda would rise 4.1 percent to 654 million euros ($854 million) from 628 million euros in 2012, data compiled by Bloomberg show.

Kloeckner & Co., the German steel trader part-owned by the Knauf family, slipped 2.1 percent to 11.66 euros as it posted a net loss of 198 million euros in 2012, compared with a profit of 10 million euros in 2011. Ebitda including restructuring costs dropped to 62 million euros from 217 million euros in 2011, the Duisburg-based company said in a statement.

IVG Immobilien AG (IVG) sank 19 percent to 1.87 euros, its largest drop in more than four years, as the real estate developer reported a net loss of 98.7 million euros. The shares were downgraded to sell from buy at Baader Bank AG.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.