German Stocks Advance as Software AG, Daimler Shares Gain

German stocks advanced, rebounding from yesterday’s decline, as Software AG (SOW) and Daimler AG (DAI) rallied after posting earnings, while China’s manufacturing strengthened more than forecast.

Software AG rallied 5.3 percent after Germany’s second-largest software maker confirmed its targets for 2013. Daimler advanced 2.5 percent after reporting third-quarter earnings that exceeded analysts’ estimates. Celesio AG (CLS1) jumped 5.2 percent after America’s McKesson Corp. agreed to buy a majority stake in the drug wholesaler.

The DAX Index (DAX) added 0.4 percent to 8,956.29 at 10:04 a.m. in Frankfurt, trading near a record level. The equity benchmark has increased 1 percent since Oct. 18 as investors speculated that a worse-than-forecast U.S. payrolls report would delay a reduction in the Federal Reserve’s monthly bond purchases. The broader HDAX Index also rose 0.4 percent today.

In China, a report showed that manufacturing strengthened this month more than expected. The preliminary 50.9 reading for the purchasing managers’ index released by HSBC Holdings Plc and Markit Economics beat the 50.4 median estimate from analysts surveyed by Bloomberg News. Readings above 50 mean that activity increased.

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 edit or 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.