European Stocks Advance With DAX as German Economy Accelerates

European stocks climbed with Germany’s DAX Index after a report showed the nation’s economy accelerated.

The Stoxx Europe 600 Index added 0.6 percent to 377.07 at the close of trading, paring gains of as much as 0.8 percent. It extended a seven-year high as Greek and European Union leaders signaled willingness to compromise on bailout terms. The measure has gained 1.1 percent this week for a second straight advance.

The DAX climbed as much as 0.9 percent to 11,013.85 in intraday trading, rising above 11,000 for the first time, before closing 0.4 percent up. The benchmark gauge is up 12 percent this year, making Germany among the best performers in 24 developed markets tracked by Bloomberg. German gross domestic product surged 0.7 percent in the fourth quarter, a faster pace than the previous three months, data showed. The euro region’s economy also gathered momentum.

The Stoxx 600 rose yesterday as optimism grew that a cease-fire agreement will help stem conflict in Ukraine, and that Greece will reach a deal. 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.

Source : Bloomberg