European Stocks Rise With DAX Above 11,000 on German Growth Data

European stocks climbed, with Germany’s DAX Index rising above 11,000 for the first time after a report showed the nation’s economy accelerated.

The Stoxx Europe 600 Index added 0.6 percent to 376.95 at 8:41 a.m. in London, extending a seven-year high, as Greek and European Union leaders signaled willingness to compromise on bailout terms after a summit yesterday. The measure has gained 1 percent this week, poised for a second straight advance.

The DAX climbed as much as 0.9 percent to 11,013.85 after data showed German gross domestic product surged 0.7 percent in the fourth quarter, following a 0.1 percent expansion in the previous three months. The index then pared gains to 0.7 percent.

The Stoxx 600 rose to a seven-year high yesterday amid speculation over a Greece and optimism that crisis in Ukraine won’t escalate after a cease-fire agreement with Russia, Germany and France. The benchmark gauge has jumped 10 percent this year as the European Central Bank unveiled a 1.1 trillion euro ($ 1.2 trillion) asset-purchase plan. Stocks have widened a gap with the euro on speculation the ECB’s policies will help boost economic growth and corporate profits.

Greece’s ASE Index rallied 7.6 percent, heading for its best week since April 2013. Prime Minister Alexis Tsipras said on Thursday his government is seeking a six-month bridge agreement with creditors that would lead to a “new contract” with the euro area. Political will exists in the region for a deal, he said. German Chancellor Angela Merkel said her first meeting with Tsipras was friendly. Greek negotiators and officials from euro-area creditors plan to meet today.

Source: Bloomberg