German stocks climbed, paring the biggest weekly drop since November, as a report showed the country’s exports rose to a record in 2012 and European Union leaders agreed to the first-ever cut to the bloc’s budget.
MorphoSys AG rose 1.4 percent after winning a U.S. patent for its antibody platform Ylanthia. Exporters Henkel AG, Daimler AG, and Adidas AG increased more than 2 percent.
The DAX Index advanced 0.8 percent to 7,652.14 at the close in Frankfurt, the biggest gain in two weeks. The gauge has still dropped 2.3 percent this week as Spanish and Italian bond yields climbed amid political uncertainty arising from corruption allegations against Premier Mariano Rajoy and impending Italian elections this month. The HDAX broader Index also added 0.8 percent today.
“With the political uncertainties surrounding Italy and Spain, the DAX may rise or fall 100 points and you can even use a coin to decide, but if the political dust settles the euro zone will heal,” Michael Woischneck, who oversees about $535 million as senior equities manager at Lampe Asset Management, said in an interview from Dusseldorf, Germany. He’s bullish on Europe and is buying shares in Technip SA, Total SA, and Henkel. “I do hope the DAX goes down to 7,500-7,480 in the next week, as that would be the perfect buying level for me.”
German exports, adjusted for working days and seasonal changes, increased 0.3 percent in December from a month earlier, when they fell a revised 2.2 percent, the Federal Statistics Office in Wiesbaden said today. Exports rose 3.4 percent in 2012 to a record 1.1 trillion euros ($1.47 trillion).
EU leaders agreed to cut spending in the bloc’s 2014-2020 budget after 25 1/2 hours of talks in Brussels, EU President Herman Van Rompuy said in a post on Twitter today. While he didn’t disclose a budget figure, the final draft blueprint included a spending ceiling of 960 billion euros, down from an original proposal of 1.047 trillion euros and less than the 994 billion euros spent in the current budget cycle.
Political groups representing the majority of the EU Parliament said that they “cannot accept” the deal, which would require the parliment’s ratification after it gained greater powers over spending in a 2009 revision of EU treaties.
“Why not slash the budget for a bit, it should be cut,” Woischneck said before the agreement. “You can’t really sell it to the European people that while we’re talking about austerity and huge piles of debt, the EU is discussing a budget of one trillion.”
In China, exports and imports rose more than estimated in a January that had five working days more than last year, the customs administration said. Overseas shipments increased 25 percent from a year earlier, the report showed, compared with economists’ projection of 17.5 percent. Imports climbed 28.8 percent, exceeding a 23.5 percent median estimate in a Bloomberg News survey.
The volume of shares changing hands in DAX-listed companies was 8.4 percent less than the average of the last 30 days, data compiled by Bloomberg showed.
MorphoSys added 48.5 cents to 34.28 euros. The company uses its Ylanthia platform to identify antibodies that may make effective treatments. Antibody drugs, used to treat diseases such as cancer or arthritis, are based on substances found in the human immune system.
Henkel, the maker of Loctite glues and Persil detergent, gained 2.5 percent to 65.63 euros for its biggest jump in seven weeks. Adidas, the world’s second-biggest sporting-goods maker, added 2.3 percent to 68.74 euros. Daimler, the third-largest maker of luxury vehicles, advanced 3.1 percent to 45.56 euros.
Xing AG, which operates a German social network, jumped 5.4 percent to 43.01 euros, its biggest advance in three months. U.S. peer LinkedIn Corp. surged as much as 20 percent in New York trading after reporting earnings that beat analyst estimates late yesterday.
Software AG, the infrastructure-software provider, gained 2.7 percent to 29.23 euros after saying it will spend as much as 180 million euros on a share buyback.
Rational AG fell 1.4 percent to 236.25 euros as Landesbank Baden-Wuerttemberg downgraded the maker of automated cookers to hold from buy.