German Stocks Climb as Fed’s Lockhart Supports Stimulus
Kabel Deutschland Holding AG (KD8) gained the most since April 17 after a report that Vodafone Group Plc may rekindle its interest in the company. Bayerische Motoren Werke AG (BMW) added 1.1 percent as a gauge of carmakers rose on the Stoxx Europe 600 Index.
The benchmark DAX Index (DAX) climbed 0.9 percent to 8,357.98 at 9:50 a.m. in Frankfurt. The gauge rose 5.5 percent in May and has rallied in all but one of the past 12 months as central banks around the world maintained their stimulus efforts. The broader HDAX Index also rose 0.8 percent today.
“The Fed’s comments yesterday influenced the U.S. markets, which ended yesterday at a day’s high,” Soeren Steinert, who helps manage about $24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, said in a telephone interview. “This is an extremely positive support for German equities this morning.”
In the U.S., Lockhart said recent data suggest the world’s biggest economy isn’t strong enough to justify a reduction in the central bank’s bond-buying program.
“To the extent that the markets are seeing mixed messages, it simply reflects the debate that’s going on among the colleagues on the Federal Open Market Committee,” Lockhart said in a Bloomberg Television interview. “The bigger picture is that any adjustment is not a major policy shift.”
Kabel Deutschland gained 2.3 percent to 74.41 euros. Vodafone may rekindle its interest in bidding for Germany’s largest cable operator, Dow Jones Newswires reported, citing a person familiar with the matter that it didn’t identify.
BMW, the world’s largest maker of luxury cars, rose 1.1 percent to 73.89 euros. Daimler AG (DAI), the third-biggest, climbed 0.6 percent to 49.35 euros.
United Internet AG (UTDI) rose 0.7 percent to 22.10 euros after Berenberg Bank said catalysts including an upgrade of earnings estimates and possible acquisitions may lead to a rerating of the provider of phone and Internet services.
Deutsche Boerse AG, the operator of Frankfurt’s stock exchange, slipped 0.7 percent to 49.69 euros after JPMorgan Chase & Co downgraded the shares to neutral from overweight, citing “moribund” activity in financial markets.
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