German Stocks Rise After China’s Central Bank Adds Funds
German stocks rose, pushing the DAX Index close to a record, after China’s central bank added funds to the financial system and the International Monetary Fund raised its forecast for global growth this year.
Henkel AG advanced 2 percent after the glue maker’s board proposed raising its dividend payout to as much as 35 percent of net income. SAP AG (SAP) retreated 1.7 percent after the world’s largest supplier of business-management software pushed back a profitability target.
The DAX added 0.2 percent to 9,730.12 at the close in Frankfurt. The gauge erased a rally of as much as 0.8 percent in the final hour of trading before resuming its advance. The broader HDAX Index gained 0.1 percent today.
“German stocks climbed after China’s central bank added funds to the financial system of the world’s second-largest economy,” said Arnaud Scarpaci, who helps oversee about $270 million at Montaigne Capital in Paris.
The People’s Bank of China pumped more than 255 billion yuan ($42 billion) into the financial system and expanded a loan facility. The monetary authority will allow small- and medium-sized Chinese banks to access its Standing Lending Facility for loans of up to two weeks on a trial basis before the Lunar New Year holiday, which starts on Jan. 31.
The IMF forecast that the world economy will grow 3.7 percent this year in revisions to its World Economic Outlook released in Washington. The fund had estimated growth of 3.6 percent last October. The Washington-based organization also urged advanced economies to maintain monetary accommodation to strengthen the recovery.
The ZEW Center for European Economic Research’s index of investor and analyst expectations unexpectedly fell to 61.7 this month from 62 in December. The median estimate of analysts in a Bloomberg News survey had called for a reading of 64. The gauge aims to predict economic developments six months in advance.
Henkel climbed 2 percent to 85.35 euros, its highest price since at least August 1992. The Dusseldorf-based owner of Loctite had paid about 25 percent of net income to shareholders.
Wincor Nixdorf AG (WIN) gained 2.8 percent to 53.21 euros. Berenberg Bank raised Europe’s biggest maker of automated teller machines to hold from sell. The brokerage said Wincor may exceed its forecasts for 2014 because of growth in emerging markets, cost savings and lower charges from restructuring.
Wirecard AG (WDI) jumped 5.2 percent to 32.12 euros. The provider of software for online payments reported that earnings before interest, taxes, depreciation and amortization probably rose 16 percent in the fourth quarter. The company forecast growth in all its core markets for 2014.
Bayer AG (BAYN) added 1.3 percent to 103.35 euros. The drugmaker raised 2 billion euros ($2.7 billion) in its biggest debt sale in Europe since 2006, according to data compiled by Bloomberg. The yield on euro-denominated investment-grade debt has fallen to the lowest in more than seven months, according to index data compiled by Bank of America Corp.
SAP fell 1.7 percent to 59.62 euros. The Walldorf-based company said operating profit adjusted for some items will probably reach 35 percent of sales by 2017 rather than in 2015 as previously projected. Analysts had predicted SAP would miss the 2015 profitability target, reaching 34.1 percent by that time, according to estimates compiled by Bloomberg.
Pfeiffer Vacuum Technology AG (PFV) retreated 4 percent to 94.50 euros, its biggest decline since May. The service-pumps manufacturer lowered its forecast for sales in 2013 to no more than 410 million euros from an earlier prediction of at least 420 million euros. The Asslar-based company said customers had postponed deliveries into 2014.
ElringKlinger AG (ZIL2) tumbled 9.7 percent to 29.06 euros. The automobile-parts maker reported that revenue probably rose 4.3 percent in 2013. That fell short of the 5 percent increase estimated by analysts on average in a Bloomberg survey.
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