German stocks advanced for a second day as companies from Linde AG to Wacker Chemie AG reported quarterly earnings.
Linde climbed the most in three weeks and Wacker Chemie rose to its highest price in 17 months. K+S AG plunged the most since at least 1998 as OAO Uralkali, the world’s largest potash producer, forecast that the price of the crop nutrient will drop. Deutsche Bank AG fell 3.9 percent after Germany’s biggest bank posted quarterly profit that missed analysts’ estimates.
The DAX Index added 0.2 percent to 8,271.02 at the close of trading in Frankfurt. The equity benchmark has climbed 3.9 percent this month and 7.5 percent from a low on June 24. The broader HDAX Index increased 0.2 percent today.
“German stocks are advancing, but lagging a little behind other European indexes,” Arnaud Scarpaci, who helps oversee $260 million as a fund manager at Montaigne Capital in Paris, wrote in a message. “The main out performer is Linde. On the other side, Deutsche Bank has been penalized by net income below consensus and writedowns.”
In the U.S., the Federal Reserve starts a two-day meeting today. The European Central Bank and the Bank of England announce policy decisions on Thursday.
The volume of shares changing hands in DAX-listed companies was 34 percent greater than the average of the past 30 days, according to data compiled by Bloomberg. announce policy decisions on Thursday.
Linde added 1.3 percent to 144.80 euros. The producer of industrial gases reported operating profit that climbed to 1.01 billion euros ($1.3 billion) from 885 million euros a year earlier. That matched the 1 billion-euro estimate of 16 analysts surveyed by Bloomberg. Revenue increased 11 percent to 4.2 billion euros, according to a statement.
Wacker Chemie jumped 8.3 percent to 75.19 euros. Europe’s largest producer of polysilicon reported earnings before interest, taxes, depreciation and amortization of 188 million euros. That beat the average analyst estimate in a Bloomberg survey of 171.4 million euros.
K+S AG slumped 24 percent to 23.74 euros as Uralkali forecast that potash prices will fall below $300 a ton. Uralkali withdrew from a joint venture with Belaruskali that had owned the exclusive right to export the crop nutrient from Belarus. Uralkali will export through Uralkali Trading, while Belaruskali will handle its own shipments. The venture had set potash prices well above producers’ cash costs.
Deutsche Bank slipped 3.9 percent to 34.50 euros after reporting net income in the three months through June that dropped to 334 million euros from 656 million euros in the same period a year earlier. That missed the 767.6 million-euro average estimate of nine analysts surveyed by Bloomberg. The lender also set aside 630 million euros to cover legal costs.
Rheinmetall AG slumped 11 percent to 35.81 euros, its biggest tumble since January 2009. The maker of armored military vehicles predicted earnings before restructuring measures of 180 million euros to 200 million euros this year. The company had forecast 240 million euros to 260 million euros. Rheinmetall said that cuts to defense budgets forced it to revise its outlook for profit.
Fresenius SE dropped 3.8 percent 95.04 euros as sales at its generic-drug unit slowed. Organic revenue grew 1 percent at the Kabi business in the second quarter, slower than the 3 percent to 5 percent pace that the company has forecast for the full year. Fresenius also posted profit of 1.44 euros a share for the quarter, compared with the average analyst estimate of 1.45 euros a share, compiled by Bloomberg.