Most German Stocks Rise After U.S. Data Beats Estimates

Most German stocks rose after a report showed U.S. consumer confidence advanced more than estimated in September and house prices gained more than forecast in July.

Suedzucker AG added 3.4 percent after it reported a 62 percent increase in first-half operating profit and raised its 2013 forecast. Lotto24 AG surged 9.3 percent after it gained a permit to broker state-run lotteries online. Continental AG fell 4 percent as Schaeffler AG sold a 10.4 percent stake in the tire producer. Daimler AG slid 1.6 percent after Goldman Sachs Group Inc. cut its profit estimates for German carmakers.

The DAX Index climbed 0.2 percent to 7,425.11 at the close of trading in Frankfurt. Nineteen of the gauge’s 30 members rose, while 11 fell. The measure has rallied 24 percent from this year’s low on June 5 as European Central Bank policy makers approved an unlimited bond-buying program and the Federal Reserve started a third round of asset purchases. The broader HDAX Index also gained 0.2 percent today.

“Consumer confidence and housing prices both surprising on the positive side gives a positive indicator for equity investors to run with moving towards the end of the quarter,” said Daniel Weston, a portfolio adviser who helps manage 70 million euros ($91 million) at Schroeder Equities GmbH in Munich.

Stocks fell 0.5 percent yesterday as German business sentiment missed estimates, optimism among Chinese manufacturers declined, and Germany and France clashed over the timing of oversight of the region’s banks.

Consumer Confidence

Confidence among American consumers rose more than forecast in September to a seven-month high. The Conference Board’s index increased to 70.3 this month from 61.3 in August, figures from the New York-based private research group showed today. The September figure exceeded the most optimistic projection of economists, whose median estimate in a Bloomberg survey called for 63.1.

Home prices in the U.S. climbed more than forecast in July from a year earlier. The S&P/Case-Shiller index of property values in 20 cities increased 1.2 percent from July 2011, the biggest 12-month advance since August 2010, a report from the group showed today in New York. The median forecast of 24 economists surveyed by Bloomberg called for a 1.05 percent gain.

The Chinese central bank added a record 290 billion yuan ($46 billion) to the financial system today by using reverse-repurchase agreements, seeking to address a cash squeeze in the run-up to a weeklong holiday.

Greece faces a financing gap that won’t be solved by budget measures being discussed because a weak economy and delayed privatizations have worsened its fiscal situation, International Monetary Fund Managing Director Christine Lagarde said at the Peterson Institute for International Economics in Washington yesterday.

Suedzucker Advances

Suedzucker gained 3.4 percent to 28.55 euros. The producer of sugar, starch and bakery additives reported a 62 percent increase in first-half operating profit to 562 million euros, driven mostly by its sugar unit. The company also increased its revenue and operating profit forecast for 2013.

Lotto24 surged 9.3 percent to 3.50 euros. The online lottery broker spun off from Tipp24 SE became one of the first private operators to gain a permit for state-run lotteries.

The license, which runs for five years, is valid for all of Germany with the exception of North-Rhine Westphalia, the country’s most populous state, and Schleswig-Holstein.

RWE AG added 1.3 percent to 35.50 euros. Germany’s second-largest utility was removed from UBS AG’s least preferred list.

Continental Falls

Continental dropped 4 percent to 78.22 euros, its biggest decline in three months. Schaeffler, a German industrial bearings maker, sold a 10.4 percent stake in Continental for 1.6 billion euros to cut debt after a failed takeover of the tire producer.

A gauge of carmakers was the worst performer on the Stoxx Europe 600 Index. Goldman Sachs cut its 2012-2014 profit estimates for German carmakers citing deterioration in European premium car pricing since the second quarter.

Daimler, the world’s third-largest maker of luxury cars, lost 1.6 percent to 39.46 euros. Bayerische Motoren Werke AG, the biggest maker of luxury cars, fell 1.4 percent to 58.81 euros.

Preferred shares of Volkswagen AG retreated 1.7 percent to 152.25 euros. Europe’s largest carmaker said the second half will be more difficult as the region’s economy deteriorates.

Deutsche Telekom AG dropped 1.8 percent to 9.77 euros. The stock was cut to hold from buy at Jefferies Group Inc.

Infineon Technologies AG plunged 6.1 percent to 5.11 euros, its biggest drop in three months. Europe’s second-largest semiconductor maker said it sees first-quarter sales falling as much as 10 percent from the previous quarter. The company said it will take steps to boost profitability beyond the first quarter of 2013.

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