German Stocks Advance as U.S. House Prices ClimbJonathan Morgan
German stocks advanced as a report showed that house prices in the U.S. rose at the fastest pace in more than six years.
ThyssenKrupp AG gained 2.7 percent. Bayer AG lost 2.8 percent after an American woman sued the drugmaker, saying that it failed to warn about the risks posed by a contraceptive device called Mirena. Software AG slumped 17 percent after reporting fourth-quarter profit, earnings and sales that missed analysts’ estimates.
The DAX Index advanced 0.2 percent to 7,848.57 at the close of trading in Frankfurt, rebounding from an earlier decline of as much as 0.4 percent. The gauge has risen 3.1 percent so far this year as U.S. lawmakers agreed on a compromise budget and American companies reported better-than-estimated earnings. The broader HDAX Index added 0.1 percent today.
In the U.S., a report showed that house prices in 20 of the nation’s cities rose in November from a year earlier by the most in more than six years. The S&P/Case-Shiller index of property values increased 5.5 percent, the biggest year-on-year gain since August 2006. The median projection of 30 economists surveyed by Bloomberg had called for prices to climb 5.6 percent. The gauge, which gained 4.2 percent in the year through October, has risen every month since the end of 2011.
German consumer confidence will increase in February, GfK SE said. The Nuremberg-based market-research company forecast that its consumer-sentiment index, based on a survey of about 2,000 people, will rise to 5.8 from a revised 5.7 in January. Economists had predicted a reading of 5.7, according to the median of 34 estimates in a Bloomberg News survey.
ThyssenKrupp gained 2.7 percent to 17.97 euros. Cia. Siderurgica Nacional SA may obtain 4 billion Brazilian reais ($2 billion) from Banco Nacional de Desenvolvimento Economico e Social, Brazil’s national-development bank, to buy the German steelmaker’s CSA unit in Brazil and Calvert Steel business in the U.S., Valor Economico reported.
The acquisition may be completed by the end of March, according to Valor, which cited unidentified people close to the negotiations.
Bayer lost 2.8 percent to 73.57 euros after a woman in Pennsylvania sued the drugmaker for failing to say that Mirena can become embedded in the body or cause a pregnancy outside the womb. Tricia Prendergast filed the complaint in a federal court in Philadelphia. She required surgery to remove a Mirena device after complications, according to her complaint.
Software AG slumped 17 percent to 28.90 euros after reporting fourth-quarter revenue of 276 million euros ($372 million), less than the average analyst estimate of 289.4 million euros. Earnings before interest and taxes of 75.4 million euros and net income of 50.7 million euros for the quarter also missed projections.