German stocks climbed as Chancellor Angela Merkel and French President Nicolas Sarkozy prepared to meet in advance of a European Union summit on debt and as U.S. politicians neared a budget compromise.
Deutsche Bank AG and Commerzbank AG rose more than 3 percent, with banks posting the best performance on the Stoxx Europe 600 Index. Dialog Semiconductor Plc jumped 6.5 percent after Apple Inc. yesterday posted profit that beat analyst estimates by 33 percent. ThyssenKrupp AG fell with metal prices.
The benchmark DAX Index rose 28.69, or 0.4 percent, to 7,221.36 at the 5:30 p.m. close in Frankfurt after shifting between gains and losses more than 10 times today. The measure has dropped 4.1 percent since this year’s high on May 2 amid concern Europe’s sovereign-debt crisis may worsen. The broader HDAX Index gained 0.5 percent today.
“Speculation U.S. lawmakers may find a compromise on government spending in the next couple of days has a positive effect on the market today,” said Thilo Mueller, who helps manage 120 million euros ($170 million) at MB Fund Advisory in Limburg, Germany.
Earnings figures show “the technology sector is growing solidly, and the market has more room to the upside if we get more positive numbers,” Mueller said. “We’re also expecting to go one step further in finding a solution to solve the debt crisis and stabilize the banking sector at the EU summit.”
President Barack Obama praised a bipartisan Senate proposal for a $3.7 trillion debt-cutting plan as U.S. lawmakers intensify efforts for a compromise on government spending less than two weeks before a threatened default.
Merkel and Sarkozy were scheduled to meet after the close of European markets to seek agreement on fighting the debt crisis before a European Union summit that Greek Prime Minister George Papandreou says could make or break the euro.
Deutsche Bank rose 3.4 percent to 37.68 euros and Commerzbank advanced 6.3 percent to 2.51 euros. A gauge of bank stocks in Europe rose the most in six months.
Dialog Semiconductor jumped 6.5 percent to 13.78 euros after Apple, the maker of iPhones and iPads, said net income in the third quarter more than doubled to $7.31 billion, or $7.79 a share. Sales climbed 82 percent to $28.6 billion. Analysts had predicted profit of $5.87 a share and revenue of $25 billion, according to Bloomberg data.
ProSiebenSat.1 Media AG gained 3 percent to 19.22 euros as Germany’s biggest private broadcaster was raised to “buy” from “neutral” at UBS AG.
Duerr AG soared 6 percent to 30.35 euros after the maker of painting robots for the automobile industry raised its forecast for earnings before interest and tax in 2011 to 4 percent to 4.5 percent of sales from 3.5 percent to 4 percent. Ebit jumped to 32 million euros in the first half from 1.1 million euros a year earlier. Duerr said it raised its sales expectations to 1.75 billion euros for this year.
ThyssenKrupp, Germany’s biggest steelmaker, declined 1 percent to 31.34 euros as copper, lead, nickel and zinc all fell on the London Metal Exchange.