German Stocks Advance as Economy Unexpectedly Grows; Banks Gain

By Julie Cruz

Aug. 13 (Bloomberg) -- German stocks advanced for a second day as the economy unexpectedly grew in the second quarter, signaling an end to the worst recession since World War II.

The benchmark DAX Index added 0.7 percent to 5,387.24 as of 9:15 a.m. in Frankfurt. The measure has rallied 47 percent since March 6 as companies worldwide from Goldman Sachs Group Inc. to Apple Inc. and Bayer AG reported better-than-estimated earnings and economic data indicated a global improvement. The broader HDAX Index gained 0.7 percent today.

Gross domestic product rose a seasonally adjusted 0.3 percent from the first quarter, Germany’s Federal Statistics Office in Wiesbaden said today. The French economy also expanded 0.3 percent, Finance Minister Christine Lagarde said. Economists predicted contractions of 0.3 percent in Germany and a 0.2 percent in France, Bloomberg News surveys showed.

Deutsche Bank AG and Commerzbank AG, Germany’s biggest lenders, added 1.6 percent to 46.37 euros and 1.8 percent to 6.09 euros, respectively. Allianz SE, Europe’s largest insurer by market value, climbed 1.7 percent to 76.48 euros.

RWE AG gained 1.1 percent to 60.17 euros. Germany’s second- largest utility said profit rose 4.7 percent in the first half after the company locked in power tariffs at levels set before the recession. Earnings adjusted for swings in fuel prices increased to 2.23 billion euros ($3.17 billion) from 2.13 billion euros a year earlier.

Salzgitter AG dropped 2 percent to 67.30 euros. Germany’s second-largest steelmaker reported a second-quarter net loss of 90.9 million euros. Analysts surveyed by Bloomberg estimated a loss of 62.1 million euros.

To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net.