Nov. 11 (Bloomberg) -- German stocks advanced, with the benchmark DAX Index climbing for the sixth week in seven, as Italy’s Senate approved a debt-reduction package in an attempt to shore up investors’ confidence in the country.
Allianz SE gained 5.6 percent after reporting operating profit that exceeded the average analyst estimate. HeidelbergCement AG rose 2.1 percent as Goldman Sachs Group Inc. and Morgan Stanley recommended the stock. SMA Solar Technology AG jumped 10 percent after reporting third-quarter net income and sales that beat analysts’ estimates.
The DAX Index climbed 3.2 percent to 6,057.03 at the close in Frankfurt. The gauge has rallied 19 percent since this year’s low on Sept. 12 as investors speculated that policy makers will protect Italy and Spain from the sovereign-debt crisis. The broader HDAX Index rose 3.3 percent today.
“It’s a good day today because we have a new government in sight,” said Robert Halver, head of research at Baader Bank AG in Frankfurt. “We will get smart and experienced leaders in Italy and Greece, but it’s a marathon to solve all the problems not a sprint.”
The Senate in Rome voted 156 to 12 to pass the package of measures promised to the European Union in a bid to boost growth and cut Italy’s debt of 1.9 trillion euros ($2.6 trillion), the world’s fourth biggest. Opposition lawmakers did not take part in the vote, allowing the bill to pass.
The Senate moved the ballot forward after Prime Minister Silvio Berlusconi lost his parliamentary majority this week, leading bond yields to surge to euro-era records.
In Greece, a national-unity government led by Lucas Papademos was sworn in today in Athens. President Karolos Papoulias gave Papademos the mandate to form a government so that he can make the budget cuts needed to secure the 130 billion-euro bailout agreed with the rest of the euro area on Oct. 26. Elections may be held on Feb. 19.
In the U.S., a report showed confidence among consumers rose in November more than economists had projected. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment climbed to 64.2 this month, the highest since June, from 60.9 in October. The median estimate of 67 economists surveyed by Bloomberg News called for a reading of 61.5.
Allianz rose 5.6 percent to 76.25 euros as the insurer reported operating profit of 1.91 billion euros in the third quarter. That beat the average analyst estimate of 1.7 billion euros.
“We remain committed to achieving our operating profit target for 2011,” Chief Financial Officer Oliver Baete said in the statement.
Deutsche Bank, Commerzbank
Deutsche Bank AG and Commerzbank AG, Germany’s biggest banks, increased 5.8 percent to 29 euros and 5.7 percent to 1.61 euros, respectively.
HeidelbergCement, the world’s third-biggest cement maker, rose 2.1 percent to 32.27 euros. Morgan Stanley assumed coverage of the stock with an “overweight” recommendation, while Goldman Sachs recommended buying the shares after a “strong” third quarter.
SMA Solar jumped 10 percent to 50 euros, its highest price in eight weeks. The solar company also maintained its yearly outlook for sales and operating profit.
IVG Immobilien AG soared 30 percent to 4.03 euros, its biggest gain since at least 1996, after the real-estate company said third-quarter earnings and revenue beat analysts’ estimates.
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