German stocks advanced, after the benchmark DAX (DAX) Index posted the longest streak of weekly gains since May, as investors awaited this week’s monetary-policy decision from the European Central Bank.
Fuchs Petrolub SE rose the most in more than eight months after saying third-quarter profit climbed. K+S AG (SDF) rallied the most since April 2009 after analysts upgraded their ratings on the fertilizer producer. Stada Arzneimittel AG fell 5.2 percent as Deutsche Bank AG downgraded the drugmaker.
The DAX gained 0.3 percent to 9,037.23 at the close of trading in Frankfurt. The gauge climbed 0.3 percent last week, its fourth consecutive weekly advance, as Volkswagen rallied on better-than-expected third-quarter profit and cooling inflation fueled speculation the ECB may ease monetary policy. The broader HDAX Index advanced 0.4 percent today.
“We would expect the ECB to strike a dovish tone at the press conference,” Morgan Stanley economists led by Jonathan Ashworth wrote in a note. “Renewed appreciation of the euro and continued weakness in the economy support our view that further monetary-policy stimulus will eventually be necessary.”
Economists at Royal Bank of Scotland Group Plc, UBS AG, and Bank of America Corp.’s Merrill Lynch unit project the central bank will cut its benchmark interest rate to 0.25 percent after its policy meeting on Nov. 7. Still, 65 of 68 economists predict no change from 0.5 percent, according to estimates compiled by Bloomberg News. The ECB last cut the main refinancing rate after its May 2 meeting.
In the U.S., data today showed factory orders rose 1.7 percent in September after declining 0.1 percent in the prior month, missing the median economist estimate for a 1.8 percent increase.
The volume of shares changing hands in DAX-listed companies was 27 percent lower than the average of the past 30 sessions, data compiled by Bloomberg showed.
Fuchs Petrolub added 5.8 percent to 62.84 euros. The world’s largest independent lubricant maker said third-quarter earnings before interest and taxes rose 5.8 percent to 83.4 million euros ($113 million) from the same period last year, as demand growth in Europe and Asia compensated for lower euro revenue arising from weaker emerging-market currencies.
K+S climbed 9.3 percent to 20.98 euros as HSBC Holdings Plc upgraded the shares to neutral from underweight, while Commerzbank AG raised its rating to hold from reduce. Commerzbank increased its estimate for potash prices to $330 per tonne from $300 a tonne, and said K+S could announce plans to cut as much as 200 million euros in costs when it reports quarterly results on Nov. 14.
ThyssenKrupp AG rose 1.5 percent to 19.14 euros. Ursula Gather, head of the board of trustees at Germany’s Krupp Foundation, didn’t exclude taking part in a capital increase by the steelmaker in a briefing last week, Handelsblatt reported. The foundation is ThyssenKrupp’s largest shareholder, data complied by Bloomberg show.
Deutsche Wohnen AG added 0.6 percent to 14.20 euros after saying 78.6 percent of GSW Immobilien AG shareholders accepted its offer to buy the residential landlord. GSW gained 0.5 percent to 34.98 euros. Separately, Kepler Cheuvreux upgraded its recommendation on both property developers to buy from hold.
Stada Arzneimittel AG (SAZ) fell 5.2 percent to 39.84 euros, its largest decline in almost two months. Deutsche Bank cut its rating to hold from buy, citing a lack of catalysts to drive the stock higher after it surpassed its 40 euros per share price target. The company gained 72 percent this year through to Nov. 1, the best performing member of the Stoxx 600 healthcare index.
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