German Stocks Advance as China Production Beats Forecasts
German stocks advanced for a fifth day as reports showed Chinese industrial production and retail sales climbed at a faster than expected pace in August.
Volkswagen AG (VOW) and Daimler AG (DAI) both gained more than 2 percent as a gauge of carmakers climbed. Dialog Semiconductor Plc (DLG) jumped 4.2 percent after Kepler Cheuvreux added the stock to its German selected list. Kloeckner & Co. rose 2.7 percent after Jefferies Group LLC upgraded the steel trader.
The DAX Index (DAX) advanced 1.5 percent to 8,396.29 at 10:42 a.m. in Frankfurt. The equity benchmark increased 2.1 percent last week as manufacturing growth in the U.S. and China, the world’s two largest economies, beat projections. The broader HDAX Index increased 1.4 percent today.
“The latest data coming out of China is a clear indication that emerging markets are still in good shape,” Robert Halver, head of capital-markets research at Baader Bank AG in Frankfurt. “For Germany, this rather good data from China is a reliable boost for German export-orientated companies.”
In China, industrial output rose 10.4 percent in August from a year earlier. Economists had predicted production would increase 9.9 percent after a 9.7 percent gain in July, according to the median estimate compiled by Bloomberg. Retail sales jumped 13.4 percent, compared with a projected 13.3 percent advance and a 13.2 percent gain the previous month.
U.S. President Barack Obama said on ABC News that he may postpone plans to launch a military strike in Syria if the regime of Bashar al-Assad complies with a Russian proposal to surrender its chemical weapons.
The volume of shares changing hands in DAX-listed companies was 54 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.
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