German Stocks Advance to One-Month High; Bilfinger, PSI Rally
German stocks climbed to a one-month high as greater-than-estimated industrial output in China and a forecast of faster growth in Europe boosted confidence that the global economy will continue to recover.
HeidelbergCement AG (HEI), the world’s third-largest cement maker, and Thyssenkrupp AG (TKA) both climbed more than 1 percent after China’s industrial production rose by 14 percent in August. Deutsche Bank AG (DBK), the country’s largest lender, gained 1.7 percent after it said it will raise at least 9.8 billion euros ($12.6 billion) to take over Deutsche Postbank AG (DPB) and meet stricter minimum capital requirements for banks.
The DAX Index (DAX) gained 46.91, or 0.8 percent, to 6,261.68, the measure’s highest level since Aug. 10, at the 5:30 p.m. close in Frankfurt. The gauge rallied 1.3 percent last week after a bigger-than-forecast drop in U.S. jobless-benefit claims added to signs that the economy may avoid another recession. The broader HDAX Index (HDAX) gained 0.7 percent today.
“We are constructive on the outlook for both global growth and European equity performance,” Gareth Evans, a London-based equity strategist at Deutsche Bank wrote in a report. “European equity returns depend on global growth and we expect the global recovery to continue.”
HeidelbergCement climbed 2.6 percent to 35.87 euros. Salzgitter AG gained 1.1 percent to 51.87 euros. Thyssenkrupp AG increased 1.1 percent to 23.44 euros.
Industrial production in China rose the most in three months as retail sales and lending topped economists’ estimates, statistics bureau and central bank data released Sept. 11 in Beijing showed. Imports also accelerated, in another sign that Chinese growth is picking up after moderating in the second quarter.
Europe’s economy may grow almost twice as fast as previously forecast this year, the European Commission said. Gross domestic product in the 16-nation euro region may increase 1.7 percent this year instead of a previously projected 0.9 percent, the Brussels-based commission said in a report published today.
Deutsche Bank advanced 1.7 percent to 48.51 euros. The lender expects to offer 24 euros to 25 euros a share in cash as it increases its 29.95 percent stake in Postbank, the Frankfurt-based bank said yesterday. The company intends to book a charge of about 2.4 billion euros in the third quarter as it marks down the value of its existing Postbank holding. Postbank slumped 7.8 percent to 24.92 euros.
Bank stocks rallied across Europe after regulators reached a compromise in Switzerland yesterday that more than doubles the minimum capital needed by the world’s banks while giving them as long as eight years to comply.
Bilfinger Berger AG gained 2.7 percent to 50.92 euros. The construction company may expand its services unit through an acquisition, Chief Financial Officer Joachim Mueller told Boersen-Zeitung.
PSI AG advanced 1.9 percent to 13.80 euros. The company, whose software manages pipelines and power networks for E.ON AG and OAO Gazprom, was rated “buy” in new coverage at Deutsche Bank.
SGL Carbon SE (SGL) rose 1.3 percent to 25.92 euros. The world’s largest maker of carbon and graphite products will increase its operating profit by about 10 percent this year because of orders from the steel industry, Chief Executive Robert Koehler told WirtschaftsWoche.
Volkswagen AG (VOW) climbed 1.3 percent to 88.96 euros. The maker of cars from Audi through Beetle named Jonathan Browning, a former General Motors Corp. and Ford Motor Co. executive who joined VW in June, as its U.S. chief executive officer today. Browning will replace Stefan Jacoby, ending a 2 1/2-month leadership vacuum at the U.S. division of Europe’s largest carmaker.