German stocks climbed, snapping two days of losses, as Federal Reserve chairman nominee Janet Yellen signaled the central bank will maintain stimulus measures until the U.S. economy improves.
K+S AG advanced 2.5 percent after posting third-quarter profit that beat forecasts and saying it plans to save 500 million euros ($673 million) over the next three years. Infineon Technologies AG added 2.4 percent after Baader Bank advised investors to buy the shares. RWE AG tumbled 5.3 percent as Germany’s second-biggest utility forecast profit will drop next year on weak power prices.
The DAX (DAX) rose 0.9 percent to 9,133.84 at 9:46 a.m. in Frankfurt. The gauge fell 0.6 percent in the past two days as data showed euro-area industrial output missed estimates. It has rallied 20 percent this year as central banks around the world maintained stimulus measures. The broader HDAX Index gained 0.8 percent today.
Yellen, who will replace Chairman Ben S. Bernanke when his term expires Jan. 31, said after European markets closed yesterday that the U.S. economy and labor market are not performing to their full potential.
“‘‘A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases,’’ she said in testimony prepared for her nomination hearing before the Senate Banking Committee today in Washington. ‘‘Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.’’
In Germany, gross domestic product rose 0.3 percent in the third quarter after a 0.7 percent-increase in the previous three months, according to the Federal Statistical Office in Wiesbaden. That matched the median projection of economists in a Bloomberg survey.
To contact the reporter on this story: Namitha Jagadeesh in London at email@example.com
To contact the editor responsible for this story: Andrew Rummer at firstname.lastname@example.org