German Stocks Climb as Alcoa Beats Estimates on EarningsJonathan Morgan
German stocks advanced for a second day as Alcoa Inc. started the U.S. earnings season by posting profit and sales that beat analysts’ estimates.
Siemens AG gained after Deutsche Bank AG upgraded Europe’s biggest engineering company. Deutsche Wohnen AG also increased after UBS AG predicted that profit at real-estate companies in continental Europe will climb.
The DAX Index rose 1.1 percent to 8,057.75 at the close of trading in Frankfurt. The gauge has still fallen 5.6 percent since May 22, when the Federal Reserve signaled that it may pare stimulus if the U.S. economy strengthens in line with its forecasts. The broader HDAX Index also added 1.1 percent today.
“Alcoa seems to be a solid basis as it was able to beat consensus estimates,” Christian Schmidt, a market analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said in a telephone interview. “The question is if the move higher is a real move or just short term, technically driven.”
Alcoa, the first member of the Dow Jones Industrial Average to report quarterly results, posted profit excluding some expenses of 7 cents a share. That beat the 6-cent average of 15 estimates compiled by Bloomberg. Sales fell to $5.85 billion, still beating the $5.79 billion average projection.
In Europe, the 17 finance ministers representing the euro area agreed to release 3 billion euros ($3.8 billion) of aid to Greece, seeking to calm the region’s debt crisis before Germany’s elections in September.
Greece will get 2.5 billion euros this month and the rest in October if Prime Minister Antonis Samaras’s coalition delivers on structural changes and cuts to spending. Greece will recoup 2 billion euros in central-bank profits on its bonds and receive 1.8 billion euros from the International Monetary Fund.
Siemens added 0.9 percent to 78.82 euros after Deutsche Bank AG upgraded the shares to hold from sell. The brokerage predicted that Siemens will incur lower charges on its projects. The bank also projected orders of 21.2 billion euros and sales of 19.4 billion euros for the third quarter.
Deutsche Wohnen, Germany’s largest residential landlord by market value, advanced 0.7 percent to 13.15 euros. Earnings per share for real-estate companies in continental Europe will climb by 8 percent in the first half of 2013 from a year earlier, according to a note from UBS.
Hamburger Hafen & Logistik AG, which handles about 80 percent of containers at the port of Hamburg, gained 2.8 percent to 17.36 euros after Hauck & Aufhaeuser upgraded the shares to hold from sell.
The volume of shares changing hands in DAX-listed companies was 21 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.