German Stocks Rise as GDP Said to Have Beaten Forecasts

German stocks advanced as the government was said to have estimated that Europe’s biggest economy grew more in the second quarter than analysts forecast.

QSC AG (QSC), a provider of telephony and data services to small and medium-sized businesses, jumped 9.5 percent after posting an increase in quarterly net income. Deutsche Boerse AG (DB1) retreated 2.7 percent after Equinet Bank AG downgraded the shares to sell.

The DAX (DAX) added 0.3 percent to 8,359.25 at the close of trading in Frankfurt, after earlier falling as much as 1.1 percent. The equity benchmark declined 0.8 percent last week. It has rallied 8.7 percent from its low on June 24 as the European Central Bank said that interest rates will remain low for an extended period. The broader HDAX Index rose 0.2 percent today.

“We are in a phase of indecision as quantitative easing tapering is just around the corner and economic data have been mixed lately,” Peter Garnry, an equity strategist at Saxo Bank A/S in Copenhagen, wrote in an e-mail. “It is likely that we will be in these sideways markets for a while until we get some hard data confirming positive surveys from the euro area.”

Germany’s Economy Ministry has predicted second-quarter economic growth of about 0.75 percent, according to a person familiar with the forecast, who asked not to be identified because the projection is confidential. That exceeds the 0.6 percent median of 46 economist estimates compiled by Bloomberg. Germany’s Federal Statistics Office will release the data on Aug. 14.

“Germany has demonstrated better than expected economic results recently,” James Butterfill, who helps manage about $44 billion as head of global equity strategy at Coutts & Co. in London, wrote in an e-mail. “The country continues to be one of our favoured equity markets within Europe.”

Japanese Growth

Japan’s economy expanded an annualized 2.6 percent in the second quarter, slowing from a revised 3.8 percent in the previous three months, the Cabinet Office said today in Tokyo. The median forecast of economists surveyed by Bloomberg was for 3.6 percent growth.

QSC jumped 9.5 percent to 3.31 euros after it posted a 79 percent jump in second-quarter consolidated net income to 5.2 million euros. Commerzbank AG upgraded the shares to add from hold, forecasting a six-month target price of 3.40 euros apiece, saying the company’s transformation track record has yet to be fully rewarded.

Bilfinger Forecast

Bilfinger SE (GBF) climbed 3.1 percent to 74.30 euros. Germany’s second-largest builder predicted a significantly stronger second half after reporting second-quarter net income of 47 million euros ($62.5 million), which was in line with analysts’ estimates.

Deutsche Boerse retreated 2.7 percent to 53.94 euros. Equinet downgraded the operator of the Frankfurt stock exchange to sell from hold, saying it doesn’t think recent share-price gains were justified and third-quarter trading volumes are weak. “Hence, we see a rising risk of consensus earnings downgrades,” the brokerage said.

Fraport AG declined 0.6 percent to 49.42 euros, paring earlier losses of as much as 1.3 percent, after it reported a drop in July passengers and cargo at Frankfurt airport.

Deutsche Lufthansa AG, Europe’s second-largest airline, retreated 1 percent to 14.69 euros, as a gauge of travel-related shares in Europe was among the worst performers of the 19 industry groups on the Stoxx Europe 600 Index.

The volume of shares changing hands in DAX-listed companies was 11 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.

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

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