German Stocks Advance as Investors Await Fed Meeting
German stocks advanced for a second day as investors awaited this week’s U.S. Federal Reserve meeting for signals on stimulus measures.
Volkswagen AG (VOW) gained 2.5 percent after Bank of America Corp. reiterated its buy rating on the shares. Solarworld AG (SWV) jumped the most since March 2011 after a report that Qatar Solar Technologies will buy a stake in the company.
The DAX Index (DAX) added 1.4 percent to 8,239.68 at 12:38 a.m. in Frankfurt. The equity benchmark lost 1.5 percent last week on concern that the Fed will start to taper its bond-purchase program in September. The HDAX Index rose 1.3 percent today.
“Once again investors are awaiting decisions from this week’s Fed meeting,” Marcus Silbe, an analyst at Close Brothers Seydler Research AG in Frankfurt, wrote in an e-mail. “Most traders expect that the Fed will continue to calm the market, which in turn would lower the high volatility seen over the last few weeks. While the macro data is mixed, the assumption is that the Fed will not leave its path of stimulus.”
The Fed will hold its two-day policy meeting this week, with Chairman Ben S. Bernanke scheduled to speak after the central bank’s decision on June 19.
Group of Eight leaders gather for a two-day summit in Northern Ireland today, focusing on the benefits of a trade agreement with the U.S. as they seek a path to economic growth while curbing their debt.
Volkswagen, Europe’s biggest automaker, advanced 2.5 percent to 163.05 euros. Bank of America said the carmaker’s earnings momentum has reached an inflection point amid high confidence and an upbeat outlook for China.
Solarworld, the world’s fourth-largest solar-panel maker, jumped 27 percent to 86.7 euro cents. Qatar Solar Technologies will buy a stake of about 30 percent in the company for 30 million euros ($40 million), with most of the remaining shares going to creditors, Sueddeutsche Zeitung reported, citing unidentified people in the financial industry.
Solarworld’s debt will be cut to 400 million euros from 1 billion euros, according to the report.
ProSiebenSat.1 Media AG advanced 2.6 percent to 33.22 euros. Chief Executive Officer Thomas Ebeling said he wanted the broadcaster to remain independent after the exit of its two biggest shareholders, Sueddeutsche Zeitung reported, citing an interview.
Hannover Re (HNR1) climbed 3.5 percent to 57.20 euros. The world’s fourth-largest reinsurer reiterated its 2013 net income forecast, saying the recent floods in Central Europe posed no threat to its guidance.
Munich Re, the world’s largest reinsurer, gained 2.2 percent to 144.70 euros. A gauge of insurance companies was the second-biggest gainer on the Stoxx Europe 600 Index.
The volume of shares changing hands in companies listed on the DAX was 29 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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