German Stocks Advance Before Finance Ministers’ Meeting
German stocks rose as European finance chiefs prepared to meet to seek a program to maintain Greek solvency after the country approved austerity measures.
Kloeckner & Co. SE, Europe’s largest independent steel trader, jumped 5 percent after Exane BNP Paribas raised its recommendation on the shares. Bayerische Motoren Werke AG (BMW) led declining shares in the DAX (DAX) Index.
The DAX rose 0.3 percent to 7,181.70 at 11:35 a.m. in Frankfurt. The gauge dropped 2.7 percent last week, following stocks throughout Europe lower, on concern that the U.S. will slip back into recession if lawmakers fail to reach a budget compromise and as the European Commission said the euro-area economy will stagnate in 2013. The broader HDAX Index added 0.2 percent today.
“The main focus today will be on the euro-zone finance minister meeting,” Markus Huber, head of German sales trading at Etx Capital, wrote in a note. “The main agenda will be Greece, with ministers trying to find a way how to plug another hole in Greece’s finances.”
European finance chiefs will seek a program to maintain Greek solvency after the country’s parliament approved a raft of austerity measures, even as the currency union confronts the prospect of a worsening economy.
Finance ministers from the 17-member group will meet at 5 p.m. in Brussels following the Nov. 8 agreement by Greek lawmakers to make cuts in pensions and benefits. While the ministers are unlikely to finalize an updated aid package, a European official said Nov. 9 that they’ll find a way to overcome a gap in the country’s financing this week.
Kloeckner jumped 5 percent to 8.25 euros. Exane raised its recommendation on the shares to outperform, the equivalent of buy, from neutral.
Deutsche Wohnen AG (DWNI) rallied 2.3 percent to 14.25 euros. Germany’s largest residential landlord by market value raised its forecast for funds from operations by about 8 percent after adding apartments and collecting more rent.
FFO excluding sales, a measure of a property company’s ability to generate cash, will be at least 65 million euros ($83 million) this year, the company said. That’s up from an August forecast of 60 million euros.
ElringKlinger AG (ZIL2) advanced 1.8 percent to 22.38 euros. DZ Bank AG lifted its rating on the maker of automobile parts to buy from hold.
BMW slipped 0.9 percent to 63.67 euros for the biggest decline in the DAX.
Symrise AG (SY1) slipped 0.7 percent to 26.02 euros. The stock was added to UBS AG’s list of least preferred shares.
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