DAX Climbs, Led by Deutsche Telekom, Infineon Technologies; Wirecard Gains
German stocks rose for the first time in three days as applications for U.S. unemployment benefits unexpectedly fell to the lowest level in three months.
Deutsche Telekom AG climbed 3.1 percent as rival France Telecom SA reported third-quarter profit that beat analysts’ estimates. Siemens AG advanced 1.3 percent after winning a wind- turbine contract. Wirecard AG gained 1.5 percent after reporting a rise in third-quarter earnings.
The benchmark DAX Index rose 0.4 percent to 6,595.28 at the 5:30 p.m. close in Frankfurt. The measure has rallied 5.9 percent this month amid speculation policy makers at the U.S. Federal Reserve will announce another round of asset purchases at their November meeting in a bid to jumpstart economic growth. The broader HDAX Index also climbed 0.4 percent today.
“There is growth potential on the German equity market in the next six to nine months as we’ll continue to see an expansionary monetary policy,” Christian Gattiker, Zurich-based head of research at Bank Julius Baer & Co., said at a press conference in Frankfurt today. “German equities are attractive as the country’s exporters are significantly oriented towards Asia and should benefit from the global economic growth.”
U.S. initial jobless claims decreased by 21,000 to 434,000 last week, the lowest level since early July, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance dropped to a two-year low, while those getting extended payments also fell.
Deutsche Telekom, Europe’s biggest phone company, rose 3.1 percent to 10.44 euros, the largest advance this year. France Telecom, the nation’s largest phone company, said third-quarter profit increased 1.9 percent, driven by its expansion into Africa and the Middle East.
Siemens gained 1.3 percent to 82.41 euros, the first advance in a week. Europe’s largest engineering company said it signed a contract with Enel Green Power for wind turbines with a capacity of as much as 1,200 megawatts.
Wirecard climbed 1.5 percent to 10.43 euros, the first advance in three days. The maker of electronic-payment and risk- management software said third-quarter earnings before interest and taxes rose to 17.7 million euros from 15.1 million euros.
Aurubis AG, Europe’s biggest copper, dropped 4.2 percent to 37.04 euros as Salzgitter AG sold about 275 million euros of bonds exchangeable into Aurubis shares. Salzgitter fell 1.7 percent to 51.77 euros.
To contact the editor responsible for this story: at email@example.com.