German stocks were little changed as investors waited to see whether the U.S. Federal Reserve will announce sufficient asset purchases following its meeting this week to revitalize the global economic recovery.
Bayer AG gained 1.1 percent after the drugmaker said its blood thinner Xarelto performed as well as the standard therapy at preventing blood clots in patients with an irregular heartbeat. MAN SE rose 2 percent as Royal Bank of Scotland Group Plc upgraded the shares of the truckmaker. Volkswagen AG dropped 2.7 percent after the carmaker’s chief executive officer said that claims for damages could yet stop it from merging with Porsche SE.
The DAX Index was little changed, adding less than 0.1 percent to 6,604.86 at the 5:30 p.m. close in Frankfurt. The measure rallied 6 percent in October as investors speculated that policy makers at the Fed would announce another round of asset purchases, a tactic known as quantitative easing, at their Nov. 2-3 meeting. The broader HDAX Index rose 0.1 percent today.
“The market is a bit nervous ahead of the Fed meeting, but we’re still in a solid environment for equities,” said Robert Halver, head of research at Baader Bank AG in Frankfurt. “Quantitative easing is not an argument to dramatically reduce unemployment overnight, but at least it will keep interest rates low. China’s manufacturing data is great news for Germany.”
U.S., Chinese Manufacturing
In China, the logistics federation released its purchasing managers’ index, which rose to 54.7 in October from 53.8 the previous month, with input prices climbing the most in six months. A second PMI, from HSBC Holdings Plc and Markit Economics, jumped to 54.8 from 52.9.
In the U.S., the Institute for Supply Management’s factory index increased to 56.9 in October, the highest level since May, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth and the median forecast of economists surveyed by Bloomberg News was for a decline to 54.
Fed policy makers meet on Nov. 2-3 to consider steps to boost an economy that has grown too slowly to reduce unemployment from its near 26-year high.
Bayer climbed 1.1 percent to 54.23 euros, the first advance in four days. Xarelto matched the performance of warfarin, the standard treatment over the past half century, with “comparable” safety and rates of bleeding, Bayer said in a statement yesterday.
BMW, MAN Climb
Bayerische Motoren Werke AG increased 2.8 percent to 52.96 euros, its highest price since at least 1992. German auto exports may increase by 21 percent this year to 4.15 million units, driven by increased demand from China and the U.S., Die Welt reported, citing Matthias Wissmann, head of the VDA industry group.
MAN added 2 percent to 80.60 euros, ending the longest losing streak since August. Europe’s third-largest truckmaker was raised to “buy” from “hold” at RBS.
Air Berlin Plc, Germany’s second-biggest airline, soared 3.9 percent to 3.53 euros after posting third-quarter net income that rose 43 percent as demand increased. Air Berlin also included its stake in Austrian carrier NIKI Luftfahrt GmbH for the first time.
Volkswagen’s preferred shares slumped 2.7 percent to 105.05 euros. Chief Executive Officer Martin Winterkorn sees a 30 percent risk that the company’s merger with Porsche won’t happen as agreed because of damage claims against the carmakers, Automobilwoche reported.
Nordex SE dropped 5.5 percent to 6.55 euros as the maker of wind turbines was downgraded to “hold” from “buy” at Deutsche Bank AG.