German Stocks Climb as Alcoa Beats Estimates on Earnings
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 (SIE) gained 1.2 percent after Deutsche Bank AG upgraded Europe’s biggest engineering company. Deutsche Wohnen AG (DWNI) added 1.7 percent after UBS AG predicted that earnings at real-estate companies in continental Europe will climb.
The DAX Index (DAX) gained 1.1 percent to 8,057.93 at 10:45 a.m. 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 added 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 (INDU) to report quarterly results, posted profit excluding some expenses of 7 cents a share. That beat the 6-cent average of 15 estimates (AA) 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 ($3.9 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 economic reforms 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.
The volume of shares changing hands in DAX-listed companies was 13 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.
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