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German Stocks Advance as China Manufacturing Increases
German stocks advanced, after last week’s decline, as a gauge of Chinese manufacturing beat analysts’ forecasts and U.S. President Barack Obama said he will seek congressional approval before ordering military action against Syria.
Deutsche Annington Immobilien SE (ANN) climbed 1.4 percent as Berenberg Bank recommended investors buy the shares. Deutsche Bank AG (DBK) rose 2.1 percent as the Frankfurter Allgemeine Sonntagszeitung reported that Chief Financial Officer Stefan Krause said the lender’s shares will probably “return to their old strength” in the coming years.
The DAX (DAX) jumped 1.5 percent to 8,227.31 at 9:51 a.m. in Frankfurt. The gauge lost 3.7 percent last week on concern the U.S. and its allies would take military action against Syria for chemical-weapons attacks that opposition groups say killed as many as 1,300 civilians. The HDAX Index rose 1.5 percent today.
“There are two major reasons why stocks are rising today: first, it seems that the U.S. Congress may not support military action in Syria; secondly, data from China has come in better than expected,” Christian Schmidt, a market analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said in a telephone interview. “On Friday, market participants got out of the market because of uncertainty and now it seems that the risk-takers are back.”
In China, a measure of manufacturing climbed to 51 in August from 50.3 in July. That exceeded the median economist estimate for a reading of 50.6 in a Bloomberg survey. A figure greater than 50 means that activity expanded.
Separately, Markit Economics and HSBC Holdings Plc said their purchasing managers’ index for manufacturing in the world’s second-largest economy rose to 50.1 last month from 47.7 in July.
U.S. President Barack Obama said he will ask members of Congress to back his plan for a military strike on Syria. Congressional leaders have agreed to debate military action against the Middle Eastern country once lawmakers return from their recess on Sept. 9. Britain’s parliament last week rejected a proposed strike.
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