German Stocks Advance as China Manufacturing IncreasesJonathan Morgan
German stocks rose the most in eight weeks, as a gauge of Chinese manufacturing beat forecasts and U.S. President Barack Obama said he will seek congressional approval before ordering military action against Syria.
Deutsche Post AG advanced the most on the benchmark DAX as it won admission to the Euro Stoxx 50 Index. Deutsche Bank AG and Commerzbank AG each added at least 1 percent as a gauge of European lenders climbed.
The DAX jumped 1.7 percent to 8,243.87 at the close of trading in Frankfurt. The measure lost 3.7 percent last week on concern the U.S. and its allies would take military action against Syria for chemical-weapons attacks that the Obama administration said killed more than 1,400 people. The broader HDAX Index also rose 1.7 percent today.
“There are two major reasons why stocks are rising today: first, it seems that the U.S. Congress may not support military action in Syria; secondly, data from China has come in better than expected,” Christian Schmidt, a market analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said in a telephone interview. “On Friday, market participants got out of the market because of uncertainty and now it seems that the risk-takers are back.”
In China, a measure of manufacturing climbed to 51 in August from 50.3 in July. That exceeded the median economist estimate for a reading of 50.6 in a Bloomberg survey. A figure greater than 50 means that activity expanded.
The Markit Economics and HSBC Holdings Plc purchasing managers’ index for manufacturing in the world’s second-largest economy rose to 50.1 last month from 47.7 in July.
Obama said he will ask members of Congress to back his plan for a military strike on Syria. Congressional leaders have agreed to debate military action against the regime of President Bashar al-Assad when lawmakers return from their recess on Sept. 9. Britain’s parliament last week rejected a proposed strike.
Deutsche Post climbed 3.6 percent to 22.64 euros. Europe’s largest postal service will be admitted to the Stoxx 50 on Sept. 23 as part of the gauge’s regular reshuffle.
Deutsche Bank, Germany’s biggest bank, advanced 2 percent to 33.40 euros. The Frankfurter Allgemeine Sonntagszeitung reported that Chief Financial Officer Stefan Krause said the lender’s shares will probably “return to their old strength” in the coming years.
Commerzbank AG, the country’s second-largest lender, rose 1.1 percent to 8.89 euros. A measure of banking shares posted the fifth-biggest gain of the 19 industry groups on the Stoxx Europe 600 Index.
Xing AG, Germany’s biggest business social network, retreated 1.5 percent to 74 euros. Hauck & Aufhauser Institutional Research AG downgraded the shares to sell from hold, setting a target price of 60 euros on the stock.
Xing’s shares have rallied 78 percent this year. They have run ahead of the company’s fundamentals, Hauck & Aufhauser said.
The volume of shares changing hands in DAX-listed companies was 23 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.
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