June 29 (Bloomberg) -- German stocks rallied, gaining for a second day, as Greek lawmakers passed the five-year austerity plan that the European Union made a condition for its next tranche of aid to the Mediterranean country.
Salzgitter AG advanced 1.6 percent after the EU imposed tariffs on Chinese pipes. Allianz SE increased 3 percent after Morgan Stanley recommended buying the shares. Daimler AG climbed 1.1 percent as the maker of Mercedes trucks and luxury cars announced a new investment in China.
The DAX Index rose 87.92, or 1.2 percent, to 7,258.35 at 3:55 p.m. in Frankfurt as 14 shares rose for every one that fell. The gauge has still fallen 3.6 percent from this year’s high on May 2 amid speculation Greece will fail to repay all its debt. The broader HDAX Index gained 1.3 percent today.
“A yes vote will provide calm and lead markets to focus on the business cycle and how good companies are at making money again,” Frank Velling, chief strategist at BankInvest, which manages $17 billion in Copenhagen, said in a note to clients.
In Athens, Greek Prime Minister George Papandreou won the support of a majority of lawmakers for a five-year, 78 billion- euro ($112 billion) package of budget cuts and asset sales. The EU and the International Monetary Fund had made the Greek parliament’s approval of the law a condition for the next tranche of aid to the indebted country.
Greece’s parliament needs to pass a second law tomorrow to authorize the technical introduction of the spending cuts. Euro area finance ministers meet on July 3 to decide whether to release the fifth aid payment from last year’s bailout.
Salzgitter, Europe’s biggest steel pipe maker, rose 1.6 percent to 50.23 euros after the EU imposed tariffs as high as 71.5 percent on pipes from China. ThyssenKrupp AG, Germany’s largest steelmaker, increased 2.8 percent to 35.05 euros.
Allianz, Europe’s biggest insurer, jumped 3 percent to 94.85 euros as the stock was upgraded to “overweight” from “equal weight” at Morgan Stanley.
Daimler climbed 1.1 percent to 50.95 euros as the luxury carmaker signed an agreement with its Chinese partner Beijing Automotive Industry Corp. to invest about 2 billion euros in their joint venture in the country. The deal covers the production of several models of compact cars and the construction of a plant to make engines for passenger vehicles.
Commerzbank, Deutsche Bank
Commerzbank AG rallied 2.8 percent to 2.96 euros, climbing for a second day. a second day. Handelsblatt reported the bank’s executive responsible for lending to small and medium-sized businesses had forecast an increase in loans to renewable-energy companies to about 5.5 billion euros by the end of this year.
BASF AG, the world’s biggest chemical company, rose 1.8 percent to 65.88 euros as Fitch Ratings revised the outlook on the company to stable from negative.
Specialty chemicals maker Wacker Chemie AG advanced 2.8 percent to 148.80 euros after UBS AG raised its rating on the shares to “buy” from “neutral.” K+S AG jumped 2.1 percent to 53.34 euros after UBS said it preferred fertilizer producers to other chemicals companies.
Adidas AG surged 1.9 percent to 54.79 euros, its second straight day of gains. The sporting-goods maker rallied 3.9 percent yesterday after rival Nike Inc. reported earnings that topped estimates.
--Editors: Will Hadfield, Andrew Rummer
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