European stocks extended a two-month high, as the DAX Index rallied for an 11th day after Germany’s jobless rate reached a record low.
The Stoxx Europe 600 Index climbed 0.4 percent to 347.63 at 10:06 a.m. in London, and the DAX rallied 0.7 percent, posting its longest gaining streak since May 2013. The number of people out of work in Germany fell a seasonally adjusted 14,000 in November, more than analysts had forecast. The unemployment rate was 6.6 percent, matching the revised number for the previous month. That follows the Ifo institute’s report Nov. 24 showing the nation’s business confidence improved.
“The Germany unemployment number is a positive sign,” Raimund Saxinger, who helps oversee $22 billion as a fund manager at Frankfurt-Trust Investment GmbH, said by phone. “We have already seen a positive Ifo number, and maybe a fall in the jobless rate is another confirmation of this turnaround and that the economy is doing better than feared.”
Optimism that exporters will benefit from a weaker euro has helped boost German shares, with the DAX heading for its highest close since July. The Stoxx 600 has jumped 12 percent from a low last month as European Central Bank President Mario Draghi said the lender may broaden its bond-buying program to include government debt, while China cut benchmark interest rates for the first time since 2012. Investors are seeking clues on further stimulus measures as Draghi speaks today.
The volume of shares changing hands on Stoxx 600 companies was 35 percent lower than the 30-day average, data compiled by Bloomberg show. U.S. markets are closed today for the Thanksgiving holiday.