German Stocks Rise Before ECB Announces Rate Decision

German stocks advanced as investors awaited the European Central Bank’s interest-rate decision.

Axel Springer SE rose 3.6 percent as Morgan Stanley upgraded the publisher. Sky Deutschland AG (SKYD) gained 2.7 percent after JPMorgan Chase & Co. named the company as one of its picks in the European media industry. Celesio AG (CLS1) slipped 3.6 percent after McKesson Corp. increased its offer for the drug distributor to 23.50 euros from 23 euros.

The DAX Index (DAX) climbed 0.4 percent to 9,535.21 at 12:37 p.m. in Frankfurt, rebounding from an earlier decline of as much as 0.4 percent. The equity benchmark rallied 25 percent in 2013 as the European Central Bank pledged to leave interest rates near record lows for a prolonged period, while better-than-forecast data signaled a recovery in the U.S. economy. The broader HDAX Index also added 0.4 percent today.

The ECB will leave its key interest rate at a record low of 0.25 percent when its announces its decision at 1:45 p.m. in Frankfurt, according to every estimate in a Bloomberg survey of economists. The central bank’s President Mario Draghi hosts a press conference 45 minutes later. The ECB last cut its rate for countries using the single currency in November.

In the U.S., minutes from the Federal Reserve’s December meeting showed officials saw declining economic gains from its monthly bond-buying program. The Fed decided at the meeting to start reducing the size of its asset purchases by $10 billion to $75 billion starting this month.

“Participants were most concerned about the marginal cost of additional asset purchases arising from risks to financial stability,” according to the minutes.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net

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