German Stocks Advance Before Business Confidence Report
German stocks advanced before a report that may show business confidence in Europe’s biggest economy increased in June.
Kabel Deutschland Holding AG (KD8) gained 2 percent after Vodafone Group Plc agreed to buy the cable operator for 7.7 billion euros ($10.1 billion). Metro AG (MEO) lost 2.4 percent after Citigroup Inc. downgraded the shares.
The DAX (DAX) added 0.2 percent to 7,807.71 at 9:20 a.m. in Frankfurt. The equity benchmark retreated 4.2 percent last week as investors prepared for a potential paring of stimulus later this year by the Federal Reserve. The broader HDAX Index gained 0.1 percent today.
German business confidence probably increased in June amid signs that a recovery in Europe’s largest economy is gathering pace. The Ifo institute’s business climate index, based on a survey of 7,000 executives, will rise to 105.9 from 105.7 in May, according to the median of 46 forecasts in a Bloomberg News survey. Ifo releases the report at 10 a.m. in Munich today.
Goldman Sachs Group Inc. cut its estimate for Chinese economic growth in 2013 to 7.4 percent from 7.8 percent, citing weaker economic indicators and tighter financial conditions.
Kabel Deutschland, Germany’s biggest cable operator, added 2 percent to 85.75 euros. Kabel Deutschland’s board is set to recommend Vodafone’s 87-euro per share cash offer, Newbury, England-based Vodafone said in a statement today.
Metro, Germany’s largest retailer, lost 2.4 percent to 24.30 euros. Citigroup downgraded the shares to sell from neutral, citing weakening growth in Russia -- which the bank said accounted for a quarter of Metro’s operating cash flow last year -- and the declining rouble.
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