June 4 (Bloomberg) -- Most German stocks advanced, with the benchmark DAX Index rising from a three-week low, as Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank is committed to its monetary stimulus program.
Deutsche Lufthansa AG, Europe’s second-biggest airline, climbed to its highest price since Jan. 12, 2011. Kabel Deutschland Holding AG gained the most since April 17 after a report that Vodafone Group Plc may rekindle its interest in the company. SAP AG climbed 0.9 percent after it said customers using its Hana database rose by about 15 percent since the first quarter.
The DAX added 0.1 percent to 8,295.96 at the close of trading in Frankfurt, after earlier rising as much as 1.2 percent. Three stocks climbed for each that fell. The gauge gained 5.5 percent in May and has rallied in all but one of the past 12 months as central banks around the world maintained stimulus efforts. The broader HDAX Index rose 0.2 percent today.
“We are seeing a general rebound from the losses we saw last week and on Monday,” Chris Beauchamp, a market analyst at IG in London, said in a telephone interview. “This is mainly about the weaker U.S. economic data, which reduced expectations of a change in Fed policy,” he said, referring to a weaker-than expected manufacturing report published yesterday.
In the U.S., Lockhart said recent data suggest the world’s biggest economy isn’t strong enough to justify a reduction in the central bank’s bond-buying program.
“To the extent that the markets are seeing mixed messages, it simply reflects the debate that’s going on among the colleagues on the Federal Open Market Committee,” he said in a Bloomberg Television interview after European markets closed yesterday. “The bigger picture is that any adjustment is not a major policy shift.”
Lufthansa advanced 2.3 percent to 17.10 euros. Airlines are set to spend more on orders for the latest wide-body planes from Airbus SAS and Boeing Co. as consolidation and cost cuts give them reason for optimism for a rebound in earnings this year.
Lufthansa, Japan Airlines Co. and South African Airways are among those weighing deals for models seating from 250 to 525 people, executives said at the International Air Transport Association annual meeting in Cape Town.
Kabel Deutschland gained 2.2 percent to 74.31 euros. Vodafone may rekindle its interest in bidding for Germany’s largest cable operator, Dow Jones Newswires reported, citing a person familiar with the matter that it didn’t identify.
SAP added 0.9 percent to 58.42 euros, after earlier rising as much as 2.2 percent. The largest maker of business-management software has more than 1,500 clients running its Hana in-memory database, co-Chief Executive Officer Jim Hagemann Snabe said at the company’s annual shareholder meeting in Mannheim today. He also said the company has the right strategy to meet its “ambitious” 2013 targets.
Deutsche Bank AG rose 2.3 percent to 36.73 euros. Co-Chief Executive Officer Anshu Jain said revenue at Germany’s biggest lender was “sound” in the first two months of the second quarter. While revenue at the investment-banking unit was “solid” in the period, the lender’s performance was hurt by low interest rates and pressure on margins in some regions and businesses, Jain said at a conference in New York today.
Commerzbank AG, the country’s second-largest lender, advanced 0.9 percent to 7.82 euros. A gauge of banking stocks rose the second most of the 19 industry groups in the Stoxx Europe 600 Index.
MAN SE slid 1.2 percent to 84.49 euros, its lowest price since April 26. The truckmaker owned by Volkswagen AG forecast a total return on sales this year below that of 2012, according to a statement. MAN also said that the profit expectations for MAN Diesel & Turbo SE will not be met in the medium term. The company will also book a 146 million-euro ($191 million) provision for a diesel power plant contract.
The volume of shares changing hands in companies listed on the DAX was 19 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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