May 8 (Bloomberg) -- German stocks rose for a second day after European Central Bank President Mario Draghi said policy makers are ready to ease monetary policy next month if needed.
Metro AG climbed 2.7 percent after Germany’s largest retailer posted a narrower-than-estimated quarterly loss. ElringKlinger AG jumped 6.2 percent after confirming its 2014 revenue forecast. Munich Re fell 1.2 percent after saying first-quarter earnings dropped.
The DAX Index advanced 0.9 percent to 9,607.4 at the close of trading in Frankfurt. The equity gauge fluctuated between gains and losses after the ECB left interest rates unchanged, as predicted by economists, and resumed its rally after Draghi said the central bank is only waiting for new economic forecasts before deciding on stimulus. The HDAX Index added 1 percent.
“Draghi’s comments about the possibility of quantitative easing are in line with what market participants had expected,” said Christoph Riniker, head of strategy research at Julius Baer Group Ltd. in Zurich. “Hence we’re seeing a return to the advance we saw earlier today. Considering the geopolitical environment, sentiment will continue to have its ups and downs.”
The DAX has lost 1.4 percent from its record on Jan. 17 as Russia’s annexation of Crimea and a separatist campaign in Ukraine raised concern that geopolitical tensions will undermine Europe’s economic recovery.
Draghi told reporters in Brussels that ECB will wait for economic projections in early June to take policy decisions as the euro’s exchange rate remained a cause for concern.
“The Governing Council is comfortable with acting next time, but before we want to see the staff projections that will come out in the early June,” he said. “There wasn’t a decision today. It’s a preview of the discussion we will have next month.”
Metro climbed 2.7 percent to 28.91 euros. The retailer posted a loss before interest, taxes and one-time items of 40 million euros ($55.7 million) in the three months ended in March, compared with analysts’ average estimate for a loss of 42.8 million euros.
ElringKlinger advanced 6.2 percent to 30.10 euros, its biggest increase since August. First-quarter Ebit amounted to 42.1 million euros, beating the 38.7 million euros analysts had projected. Sales totaled 324 million euros, also beating estimates.
Rheinmetall AG jumped 8 percent to 50.60 euros after the defense company posted first-quarter sales of 1.08 billion euros, beating the 1.03 billion-euro analyst projection.
Munich Re declined 1.2 percent to 157.36 euros after first-quarter net income fell to 919 million euros from 963 million euros a year earlier.
The volume of shares changing hands in DAX-listed companies was 27 percent greater than the 30-day average for this time of the day, according to data compiled by Bloomberg.
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