Germany's Stocks Advance, Heading for Weekly Increase
German stocks rose, with the benchmark DAX Index heading for its biggest weekly advance in almost two months, after data showed Europe’s largest economy expanded at a faster pace than economists had estimated.
ThyssenKrupp AG (TKA) climbed 3.9 percent after the nation’s biggest steelmaker posted quarterly earnings that beat analysts’ projections. Fraport AG advanced 2.2 percent after Deutsche Bank AG recommended investors buy the shares. Commerzbank AG (CBK) slid 2 percent after Berenberg Bank said the second-biggest German lender’s revenue targets are unrealistic.
The DAX added 0.7 percent to 9,665.13 at 12:43 p.m. in Frankfurt. The benchmark gauge has rallied 4 percent this week as Federal Reserve Chair Janet Yellen pledged to continue her predecessor’s policies to support the U.S. economy and as a report showed that Chinese imports surged. The index is 0.8 percent below its all-time high on Jan. 17 today. The broader HDAX Index climbed 0.8 percent.
“Germany’s economic prospects for 2014 are bright, with the country likely to be the engine of the growth for the euro-zone recovery,” Ishaq Siddiqi, market strategist at ETX Capital in London, wrote in a note. “The pace of growth accelerated toward the end of the year as business and consumer confidence indicators ticked up, and domestic demand was robust.”
Germany’s gross domestic product rose 0.4 percent in the three months through December from the third quarter, when it increased 0.3 percent, the Federal Statistics Office in Wiesbaden said. That beat the 0.3 percent gain projected in a Bloomberg survey of economists.
ThyssenKrupp rallied 3.9 percent to 20.48 euros. Adjusted earnings from continuing operations before interest and taxes more than doubled to 247 million euros ($338 million) in the quarter through December, the steelmaker said in a statement. That beat the 218.7 million-euro average of estimates compiled by Bloomberg.
Fraport gained 2.2 percent to 57.05 euros, the highest price in almost a month. Deutsche Bank raised its rating on the operator of Frankfurt airport to buy from hold, saying that passenger growth may accelerate this year.
Commerzbank lost 2 percent to 13.34 euros. Berenberg Bank reiterated its sell rating on the stock. The brokerage said the lender’s annual-revenue growth goal of 4 percent to 5 percent is unrealistic amid a weak economic expansion.
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