Bloomberg the Company & Products

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 Rise to Record on U.S. Debt-Talk Optimism

Don't Miss Out —
Follow us on:

Oct. 11 (Bloomberg) -- German stocks advanced to a record amid optimism U.S. lawmakers will agree on measures to lift the debt limit and avoid a default.

Deutsche Bank AG rose 1.3 percent. SAP AG, the world’s largest maker of business-management software, added 0.9 percent as peer Infosys Ltd. raised its sales forecast. K+S AG reversed earlier losses after the president of Belarus called for the revival of a partnership that had supported potash prices.

The DAX Index added 0.5 percent to 8,724.83 at the close of trading in Frankfurt, for a weekly gain of 1.2 percent. The benchmark rose 6.1 percent in September as the Federal Reserve unexpectedly refrained from reducing its monthly bond purchases. The broader HDAX Index also increased 0.5 percent today.

“I think the main driver is certainly the U.S. debt ceiling,” Raimund Saxinger, a fund manager at Frankfurt-Trust Investment GmbH, which oversees about $22 billion, said in a telephone interview. “There is changing sentiment about whether a resolution can be drawn or not.”

Obama met House Republican leaders at the White House yesterday after Speaker John Boehner proposed a short-term increase to the country’s $16.7 trillion borrowing authority that would extend the deadline for a solution to Nov. 22 from Oct. 17.

The developments were the first sign that the president and House Republican leaders could resolve the fiscal impasse. The U.S. government has been partially shut down since Oct. 1 after lawmakers failed to approve a budget.

Deutsche Bank

Deutsche Bank, Germany’s biggest lender, advanced 1.3 percent to 35.47 euros, as a gauge of bank stocks was among the best performers of the 19 industry groups on the Stoxx Europe 600 Index.

SAP gained 0.9 percent to 53.98 euros. Infosys rallied in India after saying revenue in dollar terms will increase by 9 percent to 10 percent in the 12 months ending March 2014, compared with a previous forecast of 6 percent to 10 percent.

K+S, a producer of crop nutrients, rose 0.9 percent to 19.05 euros. President Aleksandr Lukashenko proposed the revival of a partnership between Belarus’s Belaruskali and Russia’s OAO Uralkali, the world’s biggest producer of potash, that had propped up prices.

Shares of potash producers around the world fell on July 29 after Uralkali Chief Executive Officer Vladislav Baumgertner said he would exit a joint marketing venture with Belaruskali.

Osram Licht AG, the lighting manufacturer which was spun off from Siemens AG, fell 1.3 percent to 34.02 euros after Barclays Plc rated the shares underweight, setting a target price of 31 euros on the stock.

Barclays said changes in the lighting industry are disrupting existing business models, limiting profit growth to sectors where Osram is underexposed.

EON SE and RWE AG, Germany’s biggest utilities, dropped 3.6 percent to 13.74 euros and 2.1 percent to 26.78 euros, respectively, as a gauge of utility stocks posted the worst performance on the Stoxx 600.

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.