Sept. 26 (Bloomberg) -- German stocks rose as the country’s business confidence fell less than expected and the International Monetary Fund said it is ready to support European nations in their efforts to resolve the debt crisis.
Deutsche Bank AG and Commerzbank AG led rising shares, soaring more than 7 percent, after initially dropping more than 3 percent. Bayer AG jumped 4.3 percent as a study showed the company’s prostate cancer drug cut death risks by 30 percent. Kloeckner & Co. SE sank 3.8 percent after saying it expects a weak third quarter.
The benchmark DAX Index gained 2.9 percent to 5,345.56 at the 5:30 p.m. close in Frankfurt. The gauge posted the biggest drop in more than a month last week as the Federal Reserve said it sees “significant downside risks” for the economy and speculation grew that policy makers will be unable to solve the debt crisis. The broader HDAX Index increased 2.6 percent today.
The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, declined for a third straight month to 107.5 in September from 108.7 in August. Economists in a Bloomberg survey had forecast a reading of 106.5.
“The German economy will grow much slower in the months ahead but with today’s numbers, the chance has increased that it will avoid a recession,” said Bernd Weidensteiner, a Frankfurt- based economist at Commerzbank AG.
‘Whatever Is Necessary’
Euro-area countries will do whatever is necessary to end the crisis and ensure the financial stability of the entire euro area and its members, the IMF said in a statement after its meetings in Washington on Sept. 24. Advanced nations are at the “core” of a resolution to the current global uncertainty and should adopt policies to improve their finances, it said.
Deutsche Bank, Germany’s biggest bank, jumped 8.7 percent to 25.12 euros, while Commerzbank, the second largest, surged 7.8 percent to 1.76 euros. Banks were the second-best performers in the benchmark Stoxx Europe 600 Index today, gaining 3.8 percent as a group.
Allianz SE, Europe’s largest insurer, climbed 10 percent to 65.01 euros, the biggest gain since February 2009. Munich Re, the world’s biggest reinsurer, surged 7.1 percent to 85.63 euros. A measure of European insurance companies rose more than 6 percent today.
Bayer advanced 4.3 percent to 41.10 euros, as a study found that an experimental drug developed by Bayer and Algeta ASA prolonged the lives of men with prostate cancer that’s spread to their bones. A trial of the drug, called Alpharadin, in 922 men was stopped early after an interim analysis showed that patients receiving it on top of standard treatment had a 30 percent lower risk of dying than those receiving just the current therapy, according to the study.
HeidelbergCement AG rose 4.1 percent to 26.80 euros, its first advance in four days. The cement maker hasn’t experienced a decline in business amid the debt crisis, Deutsches Anleger Fernsehen cited Chief Executive Officer Bernd Scheifele as saying in an interview. Scheifele added that the company maintains its outlook for 2011 unchanged, the broadcaster reported.
Kloeckner, the German steel trader operating in 15 countries in Europe and North America, fell 3.8 percent to 9.25 euros, the lowest close since May 2009. The company is expecting a weak third quarter due to lower orders and isn’t likely to reach its earning goals for 2011, Deutsches Anleger Fernsehen reported, citing Chief Executive Officer Gisbert Ruehl in an interview.
--Editors: Srinivasan Sivabalan, Andrew Rummer
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