German Stocks Advance Amid Optimism on U.S. Debt Talks
German stocks advanced for a second day, after gaining the most in a month, amid optimism U.S. lawmakers will agree on measures to lift the debt limit and avoid a default.
Commerzbank AG (CBK) and Deutsche Bank rose 1.3 percent and 0.7 percent, respectively. SAP AG, the world’s largest maker of business-management software, climbed 0.8 percent as peer Infosys Ltd. rallied in Mumbai after increasing its sales forecast. K+S AG (SDF) slipped 1 percent as Potash Corp of Saskatchewan Inc., North America’s largest fertilizer producer, cut its profit forecast.
The DAX Index (DAX) added 0.2 percent to 8,702.18 at 9:35 a.m. in Frankfurt, heading for a weekly gain of 0.9 percent. The benchmark rose 6.1 percent in September as the Federal Reserve unexpectedly refrained from reducing its monthly bond purchases. The broader HDAX Index also increased 0.2 percent today.
“Back to the risk-on trade,” Christoph Hock, an equity sales trader at Alpha Wertpapierhandels GmbH in Frankfurt, wrote in a message. “A new all-time high for the DAX in sight, with the catalyst being President Barack Obama and leading House Republicans getting close to a deal.”
Obama and Republican leaders met at the White House yesterday after House Speaker John Boehner said he would offer a measure to postpone a potential U.S. default to Nov. 22. Without congressional action to raise the debt limit, the government will exhaust its borrowing authority on Oct. 17.
The developments were the first sign that the president and House Republican leaders could resolve the fiscal impasse. The U.S. government has been partially shut down since Oct. 1 after lawmakers failed to approve a budget.
The volume of shares changing hands in DAX-listed companies was 52 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
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