German Stocks Advance; Investors Await Stimulus Measures

German stocks advanced amid investor speculation of further central bank stimulus measures to boost the global economy as a report in China added to signs of an economic slowdown.

Fresenius SE rose 2.3 percent after it decided against reviving a bid for Rhoen-Klinikum AG. (RHK) SAP AG (SAP) added 0.7 percent. Volkswagen AG (VOW) dropped 1.4 percent after saying the coming months will be more difficult.

The DAX Index (DAX) gained 0.5 percent to 7,004.04 at 12:06 p.m. in Frankfurt. The measure has rallied 17 percent from this year’s low on June 5 as European Central Bank President Mario Draghi said he would do everything possible to preserve the euro. The broader HDAX Index added 0.4 percent today.

“China data weaker yet again boosts anticipation that we will see more action from Beijing to boost the economy,” said Chris Beauchamp, a market analyst at IG Index in London. “People are still broadly positive about the ECB meeting this week and believe Draghi will look to take measures to ease the crisis.”

The ECB holds its regular policy meeting on Sept. 6, where Draghi may also unveil details of a new bond-purchase program.

A Chinese government survey released on Sept. 1. showed factory output unexpectedly shrank for the first time in nine months in August while separate data from the Australian Bureau of Statistics today showed retail sales fell in July by the most in almost two years.

Euro-area manufacturing contracted more than initially estimated in August, suggesting the economy may struggle to avoid a recession in the third quarter.

A gauge of manufacturing in the 17-nation euro area rose to 45.1 last month from 44 in July, London-based Markit Economics said today. It had previously reported a reading of 45.3 for August, with a level below 50 indicating a contraction.