German Stocks Gain as Investors Await ECB Policy Decision
German stocks advanced, rebounding from yesterday’s decline, as investors awaited tomorrow’s monetary-policy decision from the European Central Bank.
Kloeckner & Co SE rose 1.6 percent after saying third-quarter earnings before interest, taxes, depreciation and amortization doubled, beating analyst estimates. Axel Springer AG (SPR) gained 2.6 percent after reporting quarterly revenue that exceeded forecasts. K+S AG fell the most on the gauge, losing 3.1 percent after Moody’s Investors Service downgraded its rating on Europe’s biggest potash distributor to junk.
The DAX (DAX) climbed 0.3 percent to 9,039.83 at 10:11 a.m. in Frankfurt. The benchmark gauge has risen 19 percent this year as central banks around the world pledged to leave interest rates low for a prolonged period. The broader HDAX Index added 0.4 percent today.
“Investors are expecting some very dovish comments from the ECB tomorrow,” Christoph Hock, an equity sales trader at Alpha Wertpapierhandels GmbH in Frankfurt, said in an e-mail. “There is speculation about a rate cut and a new long-term refinancing operation on the cards for December.”
Three of 70 economists’ estimates compiled by Bloomberg predict the European Central Bank will cut its benchmark interest rate to 0.25 percent at its policy meeting tomorrow, while eight of 38 respondents in a separate survey forecast a cut in December.
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