German stocks were little changed near a record, after posting their longest streak of weekly gains since 1998, as a report showed U.S. manufacturing expanded at its fastest pace in 2 1/2 years.
ThyssenKrupp AG dropped the most since August 2011 after announcing a capital increase. Lanxess AG (LXS) declined 2.6 percent as Deutsche Bank AG cut its rating on the chemical maker.
The DAX Index (DAX) slipped less than 0.1 percent to 9,401.96 at the close of trading in Frankfurt, slipping from a record 9,405.3 reached on Nov. 29. The benchmark rose 4.1 percent last month and completed an eight-week rally. It has advanced 24 percent this year, sending valuations to their highest level since the end of 2009. The broader HDAX Index (HDAX) rose less than 0.1 percent today.
“Today’s data are definitely good news,” Alexandra Estiot, an economist at BNP Paribas SA, wrote in a note to clients. “Manufacturing sentiment is sending a very positive signal, announcing a strong acceleration in production that could, this time, last for more than a couple of months. However, better stay cautious, as hard data remain very disappointing as for now.”
U.S. manufacturing unexpectedly expanded last month at a faster pace than October, a report showed. The Institute for Supply Management’s index rose to 57.3 in November, the highest reading since April 2011, from 56.4 the previous month. Economists surveyed by Bloomberg had made a median prediction of 55.1. Readings above 50 signal expansion.
U.S. data on Dec. 5 may show factory orders fell 1 percent in October. Investors will on Dec. 6 get the latest reading on U.S. non-farm payrolls for November. The Federal Reserve has said it will monitor labor-market gains before deciding when to pare its $85 billion of monthly bond purchases.
In the euro area, final readings today confirmed manufacturing in the 17-nation currency bloc expanded in November for a fifth consecutive month, while output in Germany expanded at the fastest pace since June 2011.
The DAX is trading at 13.9 times its members’ projected earnings, up from 11.3 times at the beginning of this year, data compiled by Bloomberg showed. That’s still lower than the its peak of 17.4 times in September 2009.
ThyssenKrupp dropped 8.5 percent to 17.64 euros. Germany’s largest steelmaker said it plans to sell equity equivalent to as much as 10 percent of its market capitalization. The company was valued at 9.91 billion euros ($13.4 billion) as of Nov. 29. The capital increase comes after it agreed to sell its U.S. steel plant to ArcelorMittal and Nippon Steel & Sumitomo Metal Corp. ThyssenKrupp may also sell hybrid convertible bonds.
Lanxess declined 2.6 percent to 47.43 euros, extending its loss in 2013 to 28 percent. Deutsche Bank downgraded the stock to hold from buy, saying the chemical maker may not be able to raise prices to the level required to increase profitability.
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