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German Stocks Rise as DAX Index Rebounds From Weekly Drop

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June 10 (Bloomberg) -- German stocks advanced for a second day, with the benchmark DAX Index rebounding from the biggest weekly drop since April, as data showed the Japanese economy grew more than initially forecast.

Deutsche Telekom AG added 1.5 percent after a report that SoftBank Corp. is considering buying the company’s stake in wireless carrier T-Mobile US Inc. Fresenius Medical Care AG & Co. KGaA, the biggest provider of kidney dialysis, increased 1.7 percent as Barclays Plc recommended investors buy the shares.

The DAX Index gained 0.6 percent to 8,307.69 at the close in Frankfurt, after earlier rising as much as 1.2 percent. German stocks last week posted their biggest weekly drop since April 19 amid speculation the Federal Reserve will reduce its bond-buying program if the U.S. economy strengthens. The broader HDAX Index also rose 0.6 percent today.

“We’re seeing a continued rebound today which is a signal of how strong the market really is despite last week’s nervousness,” said Matthias Jasper, head of equities at WGZ Bank AG in Dusseldorf. “A strong day in Japan is giving some support to the German market. Extreme liquidity from central banks will continue to fuel equities, and recent macro data shows the overall fundamental situation is not too bad either.”

Japan’s Topix index surged by the most in two years today as the government said the economy grew more than initially forecast in the first quarter. Gross domestic product in Japan expanded an annualized 4.1 percent, compared with a preliminary calculation of 3.5 percent, the Cabinet Office said.

Chinese Exports

China’s export growth sank to a 10-month low in May, according to a June 8 report. Overseas sales rose 1 percent from a year earlier, the General Administration of Customs said in Beijing, trailing 35 of 38 analysts’ estimates in a Bloomberg survey and down from April’s 14.7 percent pace. Imports dropped 0.3 percent, leaving a trade surplus of $20.4 billion.

In the euro-area, investor confidence rose in June on increased optimism that the economy will return to growth this year, the Sentix research institute said.

An index measuring sentiment in the euro area rose to minus 11.6 from minus 15.6 in May, the Limburg, Germany-based institute said today in an e-mailed statement. Economists had predicted an increase to minus 11.3, according to the median of 16 estimates in a Bloomberg News survey.

The volume of shares changing hands in DAX-listed companies was 25 percent lower than the average of the past 30 days, data compiled by Bloomberg shows.

Deutsche Telekom added 1.5 percent to 8.98 euros. SoftBank has intensified talks with the parent of T-Mobile as the Japanese company seeks an alternative way of entering the U.S. market should its takeover of Sprint Nextel Corp. collapse, Reuters reported, citing unnamed people familiar with the talks.

Fresenius Upgraded

Fresenius Medical increased 1.7 percent to 53.15 euros. Barclays raised its rating on the stock to overweight, similar to a buy recommendation, from equalweight, saying that draft proposals for the rebasing of U.S. public-sector insurance payments for dialysis treatment could be more favourable than currently priced into the shares.

Rhoen-Klinikum AG rose 1.1 percent to 16.86 euros. The company said it’s in talks on a partnership with Fresenius SE nine months after the competitor abandoned a takeover offer that would have created the biggest German hospital-operating network. Fresenius added 1.6 percent to 93.15 euros.

Dialog Semiconductor Plc, which makes chips used in Apple Inc.’s smartphones, lost 1.3 percent to 11.50 euros. Austrian peer AMS AG, whose semiconductors also power Apple’s devices, forecast operating profit will decline this year as clients delay orders.

To contact the reporter on this story: Sofia Horta e Costa in London at shortaecosta@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net