German Stocks Rise as Investors Await U.S. Jobs, GDP Data
Volkswagen AG (VOW) and Continental AG (CON) each rose more than 1 percent, as a gauge of European carmakers climbed on the Stoxx Europe 600 Index. Gildemeister AG (GIL) added 2.8 percent as the maker of cutting tools said it will sell shares in a rights issue to fund its expansion in Russia.
The DAX increased 0.4 percent to 8,189.17 at 9:58 a.m. in Frankfurt. The gauge has still lost 4.1 percent since May 22 as the Federal Reserve said it may reduce bond purchases if the economy improves sustainably. The broader HDAX Index rose 0.5 percent today.
German unemployment unexpectedly increased in August for the first time in three months. The number of people out of work rose by a seasonally adjusted 7,000 to 2.95 million, the Nuremberg-based Federal Labor Agency said today. Economists predicted a decline by 5,000, according to the median of 25 estimates in a Bloomberg News survey. The adjusted jobless rate stayed at 6.8 percent, near a two-decade low.
In the U.S., revised Commerce Department data at 8:30 a.m. Washington time may show the economy grew at a 2.2 percent annualized rate in the second quarter, according to a Bloomberg News survey, compared with the initial reading of 1.7 percent. A separate report may show applications for jobless benefits fell by 4,000 to 332,000 last week.
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