German Stocks Rise as Business Confidence Gains

German stocks rose for the fourth time in five days as business confidence in Europe’s largest economy unexpectedly increased and investors weighed better-than-estimated earnings from U.S. companies.

Dialog Semiconductor Plc (DLG) gained 3 percent after Apple Inc., its largest customer, reported quarterly profit that exceeded estimates and sold more iPhones than analysts had predicted. Zooplus AG (ZO1) advanced 2.8 percent after the online pet-supplies retailer said first-quarter sales rose 30 percent. Linde AG (LIN) climbed after French peer Air Liquide SA said revenue increased in the first quarter.

The DAX Index (DAX) rose 0.2 percent to 9,563.2 at 2:09 p.m. in Frankfurt. The equity gauge is 1.8 percent away from a record reached on Jan. 17 and is little changed in 2014. The broader HDAX Index also added 0.2 percent today. The volume of shares changing hands in DAX-listed companies was 11 percent below its 30-day average for this time of the day, data compiled by Bloomberg showed.

“The growth scenario in Germany is intact,” said Ralf Umlauf, head of floor research at Helaba Landesbank Hessen-Thueringen in Frankfurt. “The even higher business confidence index suggests that the German growth rate will continue to increase. The rise in expectations also indicates that the pace of economic growth should remain high this year.”

The Ifo institute’s business climate index, based on a survey of 7,000 executives, rose to 111.2 this month from 110.7 in March. Economists predicted a decline to 110.4, according to the median of 34 estimates in a Bloomberg News survey. A gauge of expectations climbed to 107.3, rebounding from the lowest level since October.

U.S. Data

In the U.S., a Commerce Department report at 8:30 a.m. in Washington will show orders for durable goods advanced 2 percent in March, according to the median economist estimate compiled by Bloomberg. They increased 2.2 percent in February.

Dialog rose 3 percent to 18.11 euros, extending this year’s gain to 16 percent. Apple said it sold 43.7 million iPhones in the three months ending March 29, topping analysts’ estimates of 37.7 million, while net income of $10.2 billion also exceeded projections. Kirchheim, Germany-based Dialog gets almost 80 percent of its sales from Apple, according to data compiled by Bloomberg.

Infineon Technologies AG gained 1.9 percent to 8.48 euros.

Zooplus advanced 2.8 percent to 57.91 euros. Total sales rose to 126.1 million euros ($174.3 million) in the first quarter, from 97 million euros in the year-earlier period, according to a statement on its website.

Linde, the world’s largest industrial-gas and medical-gas producer, added 0.9 percent to 147.35 euros. Paris-based Air Liquide SA said sales climbed to 3.73 billion euros in the first quarter and predicted profit would increase this year. Linde will report quarterly results on May 6.

ThyssenKrupp AG rose 1.5 percent to 20.71 euros. Germany’s largest steelmaker has rallied 17 percent so far this year. A gauge of industrial-goods producers in the Stoxx 600 added 0.7 percent today.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

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

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