Nov. 25 (Bloomberg) -- German stocks climbed, after posting their longest weekly winning streak since February 2012, as Iran agreed to restrict its nuclear program.
Fresenius Medical Care AG surged the most in five years after a U.S. regulator scrapped a proposed 9.4 percent cut in Medicare payments to dialysis providers. Deutsche Lufthansa AG, Europe’s biggest airline by sales, gained 1.8 percent.
The DAX Index added 0.9 percent to 9,299.95 at the close of trading in Frankfurt to a record level. The equity benchmark has surged 22 percent in 2013 as central banks around the world pledged to leave interest rates low for a prolonged period of time. The gauge has climbed for the past seven weeks. The broader HDAX Index increased 0.8 percent today.
“Stocks in Europe are up today following a strong close on Friday in the U.S. and on the Iran nuclear deal,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail. The Standard & Poor’s 500 Index closed at a record 1,804.76 on Nov. 22.
Iran agreed to limit its nuclear program in exchange for as much as $7 billion in relief from economic sanctions over six months. Diplomats including Iranian Foreign Minister Mohammad Javad Zarif and U.S. Secretary of State John Kerry announced the pact early yesterday in Geneva.
Iran’s plan to generate nuclear power had prompted concern of a race to develop nuclear weapons between the Shiite theocracy and predominantly Sunni Saudi Arabia. Iran aims to conclude a comprehensive deal with the U.S., U.K., France, Russia, China and Germany within six months.
A report from the National Association of Realtors showed the number of Americans signing to buy previously owned homes unexpectedly fell in October. The gauge of pending house sales decreased 0.6 percent. It dropped 4.6 percent in September. The median projection in a Bloomberg survey of economists had called for a 1 percent gain in the index from the previous month.
Fresenius Medical jumped 7 percent to 51.19 euros after the Centers for Medicare & Medicaid Services left payments to dialysis providers unchanged for 2014 in a final ruling.
Equinet Bank AG upgraded Fresenius Medical’s shares to buy from accumulate, describing the decision as more favorable than expected. The brokerage increased its price estimate on the shares to 61 euros from 55 euros.
Fresenius SE, which owns a 31 percent stake in Fresenius Medical, climbed 3.8 percent to 102.60 euros.
Lufthansa rose 1.8 percent to 16.07 euros as a gauge of travel and leisure stocks posted the biggest gain of the 19 industry groups in the Stoxx Europe 600 Index.
Continental AG added 2.2 percent to 153.60 euros after Bankhaus Lampe KG upgraded Europe’s second-largest auto-parts supplier to buy from hold. The brokerage said Continental’s product range should enable it to benefit more than its rivals from increasing global car production through 2016. Bankhaus Lampe increased its price forecast on the shares to 180 euros from 110 euros.
“We are more optimistic on the earnings potential and have raised our expectations accordingly,” that Bankhaus Lampe analysts wrote in a note.
The volume of shares changing hands in DAX-listed companies was 9 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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