German Stocks Climb to a Record on Global Growth Optimism
Deutsche Lufthansa AG (LHA) rallied 4.6 percent after Citigroup Inc. named the stock as one of its top picks among European airlines. RWE AG (RWE) rose 1.8 percent after Natixis SA said a court ruling yesterday on one of its nuclear plants was favorable to the utility company. Commerzbank AG (CBK) added 2.6 percent after Berenberg Bank said the lender would benefit from faster economic growth in Europe.
The DAX Index rose 0.9 percent to 9,624.15 at 9:58 a.m. in Frankfurt. The benchmark gauge has climbed 2.2 percent since Jan. 9 as the U.S. unemployment rate unexpectedly fell and banks and utilities rallied. The HDAX Index added 0.9 percent today.
The World Bank said today it expects the global economy to expand 3.2 percent this year, compared with its June projection of 3 percent and up from 2.4 percent in 2013. The bank forecast growth of 3.4 percent in 2015, up from its earlier prediction of 3.3 percent.
In Germany, a release by the Federal Statistics Office in Berlin showed that gross domestic product rose 0.4 percent in 2013, from a 0.7 percent increase in 2012. The median estimate of economists surveyed by Bloomberg was for a 0.5 percent gain.
The Federal Reserve releases its Beige Book business survey after European markets close today. The survey contains anecdotal reports on the U.S. economy from its 12 districts. The Fed next meets on Jan. 28-29. The central bank decided at its December meeting to start reducing the pace of asset purchases by $10 billion to $75 billion in January.
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