German DAX Surges Into Bull Market as Munich Re, Carmakers Rally

European Stocks Gain as Dax Index Enters Bull Market

Gains in Munich Re and carmakers pushed Germany’s DAX Index into bull territory, and sent European shares higher for a fifth day.

The DAX rallied 2.5 percent to its highest level of the year, taking its advance since a February low to 22 percent. The Stoxx Europe 600 Index added 0.9 percent. Munich Re climbed 5.7 percent after the reinsurer reported quarterly net income that was more than double the average analyst projection. BMW AG and Daimler AG climbed at least 2.8 percent after a report showed China’s retail auto sales surged in July.

After the turmoil triggered in June by Britain’s shock vote to exit the European Union, investors are showing calm. A gauge tracking volatility expectations in euro-area shares fell for a fifth day, extending its lowest level in a year. The Stoxx 600 has climbed 2.7 percent in five sessions, boosted by corporate earnings, better-than-forecast U.S. payrolls data and fresh stimulus measures announced by the Bank of England. It’s less than 1 percent away from recovering its losses since the U.K. voted to leave the European Union. The volume of shares changing hands today was a third lower than the 30-day average.

“No news from the economic side means investors have an eye on the company side,” said Heinz-Gerd Sonnenschein, equity strategist at Deutsche Postbank AG in Bonn, Germany. His firm manages about 149 billion euros ($165 billion). “The markets are stable. If you have an eye on the volatility markets, we’re at very low levels. We had Brexit, we had the banking problems coming out of Italy, but the markets are stable now.”

Stock markets have seen a tentative return to bullishness in recent sessions amid optimism that central banks will act to protect economic growth and limit the fallout from Brexit. The DAX Index today capped a fifth day of gains and is up more than 4 percent since the referendum.

Among other stocks active on corporate news today, Amec Foster Wheeler Plc jumped 12 percent, leading energy shares higher, after its revenue and earnings beat forecasts. Altice NV jumped 15 percent after its quarterly profit increased, while SFR Group SA rallied 9.4 percent after the holding company said it plans to reduce 5,000 jobs at the French phone-carrier.

Legal & General Group Plc and Danish jeweler Pandora A/S fell at least 4.2 percent after they both reported profit that missed estimates.

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