German Stocks Gain Amid Optimism on Central-Bank Stimulus
German stocks advanced for a fifth day, pushing the benchmark DAX Index (DAX) toward its biggest weekly rally since November, amid optimism that central banks from the U.S. to Japan will continue to support economic recovery.
RWE AG (RWE) led gains after a report that it is in talks to sell its Dea oil-and-gas unit. SAP AG (SAP) added 0.9 percent after Infosys Ltd., the Indian software company, forecast full-year sales in dollar terms that beat analyst estimates.
The DAX Index rose 0.5 percent to 8,197.85 at 9:43 a.m. in Frankfurt, extending its advance this week to 5 percent. The gauge has climbed 6.6 percent from a low on June 24. The broader HDAX Index added 0.5 percent today.
“The U.S. closed at record highs and that is driving German stocks,” Soeren Steinert, who helps manage about $24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, wrote in an e-mail. “More and longer stimulus means a support for global economies and more cheap money. This money needs to be invested.”
The U.S. Federal Reserve and the Bank of Japan both indicated this week they will continue with their accommodative policies, after the European Central Bank and Bank of England signaled they will keep key rates low.
The volume of shares changing hands in companies listed on the DAX was 20 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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