Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

German Stocks Advance as U.S. Payrolls Miss Estimates

Sept. 6 (Bloomberg) -- German stocks advanced, extending a weekly gain, as investors assessed whether the Federal Reserve will taper its bond purchases after a report showed U.S. payrolls climbed less than economists had projected.

RWE AG jumped 6.4 percent, leading a gauge of utilities higher. Deutz AG plunged the most in more than two years after an investor sold a 8.4 percent stake in the manufacturer of diesel engines. ProSiebenSat.1 Media AG dropped 1.1 percent after Telegraaf Media Groep NV sold its stake in the company.

The DAX Index climbed 0.5 percent to 8,275.67 at the close of trading in Frankfurt. The equity benchmark gained 2.1 percent this week as European Central Bank President Mario Draghi reiterated that interest rates will stay low for an extended period. The broader HDAX Index increased 0.4 percent today.

“Tapering is less likely now -- at least in September -- after the payroll data,” Robert Halver, head of capital-markets research at Baader Bank AG in Frankfurt, said in a telephone interview. “Liquidity is still the main driving factor in the equity markets. Cash liquidity is still king.”

Payrolls in the U.S. climbed in August less than projected. Employers hired a net 169,000 workers last month, fewer than the median forecast of 180,000 in a Bloomberg survey.

German exports, adjusted for working days and seasonal changes, fell 1.1 percent in July, the Federal Statistics Office in Wiesbaden said today. Economists had predicted an increase of 0.7 percent, according to the median of 13 estimates in a Bloomberg News survey. Imports rose 0.5 percent.

Industrial Production

A separate report showed that industrial production in Europe’s largest economy dropped 1.7 percent in July. Economists had predicted a decline of 0.5 percent, according to the median of 41 estimates in a Bloomberg News survey. The measure of output from utilities, mines and factories jumped a revised 2 percent in June.

The DAX earlier dropped as much as 0.7 percent after Vladimir Putin said Russia will help Syria if the U.S. takes military action against the regime of Bashar al-Assad.

RWE, Germany’s second biggest utility, rallied 6.4 percent to 23.28 euros.

Deutz AG tumbled 9.3 percent to 6.68 euros after Same Deutz-Fahr Group SpA sold more than 10 million shares in the manufacturer for 70 million euros ($92 million).

ProSiebenSat.1 Media dropped 1.1 percent to 30.78 euros after Telegraaf Media sold a 6 percent stake in the broadcaster for 30 euros per share.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.