German Stocks Gain as Investors Weigh Manufacturing DataTom Stoukas
German stocks advanced, with the DAX Index rebounding from the biggest monthly loss in more than a year, as investors weighed manufacturing data from the euro area, Asia and the U.S.
Siemens AG surged the most in almost 11 months after Nokia Oyj agreed to buy out its share in a joint venture for 1.7 billion euros ($2.2 billion). Commerzbank AG fell 3.7 percent, extending this year’s retreat to 40 percent.
The benchmark DAX climbed 0.3 percent to 7,983.92 at the close of trading in Frankfurt. The gauge declined 4.7 percent in June, the most since May 2012, as the Federal Reserve signaled it may start to pare stimulus if the U.S. economy strengthens. The broader HDAX Index added 0.4 percent today.
“The market is normalizing back to familiar correlation and rising in the face of weak data overnight from Asia,” Daniel Weston, a portfolio manager at Aimed Capital Management LLC in Munich, wrote in an e-mail. “Bond weakness and a rise in commodities is helping give support to risk-taking in equities.”
Ten-year U.S. Treasuries were little changed today, erasing earlier losses, while metals including copper rose in London. The volume of shares changing hands in DAX-listed companies was 4.4 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.
A gauge of manufacturing in the 17-nation euro area increased to 48.8 last month from 48.3 in May, London-based Markit Economics said today. That’s above an initial estimate of 48.7 on June 20. The gauge has been below 50, indicating contraction, since July 2011.
In China, an official PMI dropped to 50.1, the lowest level in four months, from 50.8 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said. That was in line with economist forecasts.
Japan’s quarterly Tankan index for large manufacturers turned optimistic for the first time since September 2011, rising to plus 4 in June from minus 8 in March, according to the Bank of Japan. A positive figure means optimists outnumber pessimists. The median estimate in a Bloomberg survey was for a plus 3 reading.
In the U.S., the Institute for Supply Management’s factory index rose to 50.9 in June from 49 in the previous month, which was the lowest since June 2009. The median estimate in a Bloomberg News survey called for the measure to climb to 50.5.
Siemens rallied 2.6 percent to 79.63 euros, its biggest gain since Aug. 3, 2012. Nokia will pay 1.2 billion euros for Siemens’s 50 percent stake in Nokia Siemens Networks, with the remainder as a secured loan from Siemens due a year after the deal is completed, the companies said.
Sky Deutschland AG added 4.5 percent to 5.59 euros, its highest price since October 2008. Berenberg Bank raised its 12-month price estimate for the German pay-TV provider to 6.40 euros from 5.15 euros.
Celesio AG advanced 6.2 percent to 17.74 euros. The company hired Citigroup Inc. for help in discussions with Cardinal Health Inc. and McKesson Corp., which want to take a stake in the German drug wholesaler, Reuters reported.
Hochtief AG, Germany’s biggest builder rose 3.8 percent to 52.16 euros after it sold its solutions business to SPIE SA for about 250 million euros.
Commerzbank, Germany’s second-largest bank, dropped 3.7 percent to 6.45 euros. The stock has fallen at least 20 percent in each of the past two quarters.
RWE AG fell 5.2 percent to 23.25 euros, its lowest price since September 2011, as Germany’s second-biggest utility said reimbursements for payments for natural gas from OAO Gazprom won’t affect its 2013 targets. RWE said June 27 it was awarded a decision for payments since May 2010 by an arbitration tribunal after lobbying for fairer deal as spot gas prices slumped below its long-term contract.