German Stocks Rise as DAX Sets Third Straight Record High
German stocks advanced, with the DAX Index rising to its third successive record high, as markets opened during a national holiday and volumes fell.
ThyssenKrupp AG (TKA), Germany’s largest steelmaker, rose to a five-week high. YOC AG (YOC) surged the most in more than three months after the mobile-phone advertising company said it sold 1.3 million euros ($1.7 million) of shares to increase capital. Lanxess AG (LXS), the chemical maker that joined the DAX in September, retreated 3.4 percent.
The DAX added 0.2 percent to 8,262.55 at the close in Frankfurt. The benchmark measure had set records for the previous two days as companies posted earnings that beat forecasts. The gauge has risen 8.5 percent this year as central banks around the world maintained stimulus measures. The broader HDAX Index also increased 0.2 percent today.
“Central banks are committed to delivering recovery through the end of 2013 and into 2014,” Bill O’Neill, who helps oversee about 600 billion euros at UBS Global Asset Management in London, told Mark Barton on Bloomberg Television. “We could at any stage get a correction of 5 percent, but the chances are, with the mood in the market and abundant liquidity, it will be bought into.”
The volume of shares changing hands in companies on the DAX was 53 percent lower than the average of the past 30 days, according to data compiled by Bloomberg. Most businesses closed for the Ascension Day holiday in Germany.
In the U.K., the Bank of England’s Monetary Policy Committee left its bond-purchase program unchanged at 375 billion pounds ($581 billion). All but one of the 44 economists surveyed by Bloomberg News had forecast no change.
The central bank also held its key interest rate at a record low of 0.5 percent. All 52 economists in a separate poll had predicted no change. The bank will publish the minutes of today’s meeting on May 22.
ThyssenKrupp rose 2.1 percent to 15.01 euros. Shares of the Essen, Germany-based steelmaker have still decreased 15 percent so far this year.
YOC surged 7.6 percent to 5.07 euros, its largest rally since Jan. 22. The Berlin-based company placed the 258,500 shares at 5 euros apiece.
Lanxess decreased 3.4 percent to 53.92 euros, its biggest decline in more than six weeks.
Commerzbank fell 1.7 percent to 10.50 euros, its lowest price since April 30. The lender has slumped 27 percent so far this year, while the Stoxx 600 Banks Index has gained 9.1 percent.
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