German stocks climb to two-year high.

German stocks rose, sending the benchmark DAX Index to its highest close in more than two years, amid forecasts that companies will continue to grow profits even if the crisis spreads to Europe of sovereign debt.

Automakers led gains on the DAX, up at least 3 percent. MorphoSys AG gained 10 percent after raising its sales outlook. Symrise AG retreated 3.3 percent, Deutsche Bank downgraded the shares of the fragrance manufacturer.

The DAX rose 42.01, or 0.6 percent, to 7006.17 at the close of 5:30 pm in Frankfurt, its highest level since June 2008. The index has advanced 0.8 percent this week, its fourth consecutive weekly rise, the longest streak of gains since April. HdaX The broader index also rose 0.6 percent today.

"European stocks continue to benefit from low valuation levels and modest economic improvement, as reflected in improving profitability and generating free cash flow," wrote Edmund Shing, strategist at London-based Barclays Capital, in a report on the market outlook presented yesterday in London. "In 2011 already firmly in view, we have established a positive outlook for European equities in the next 12 months, despite the current market obsession about possible risks of contagion from the euro zone."

European shares rise 12 percent until late next year, surpassing the gains of 2010, as rising incomes and historically low interest rates to help businesses overcome the sovereign debt crisis, a survey of 13 strategists sample.

Goldman Sachs Group Inc., the most optimistic forecaster, said that the Europe Stoxx 600 Index will be joined by 20 percent, because the benefits can extend twice as fast as the rate of 14 percent over 26,000 average analyst estimates compiled by us.

VW, BMW, Daimler

The DAX has risen 18 percent this year, corporate profits rose, the Federal Reserve announced a bonus program of 600 billion U.S. dollars to purchase to help the recovery of U.S. economy and rescued the European Union, Greece and Ireland.

Volkswagen AG rose 3.9 percent to 129 euros after Europe's largest carmaker said vehicle sales in November the group rose 16 percent to 617,100 cars, vans and SUVs. Bayerische Motoren Werke AG, the world's largest maker of luxury cars, gained 3.9 percent to € 62.52, while Daimler AG, the second largest and most advanced 3 percent to € 54.87.

MorphoSys, HeidelbergCement

MorphoSys jumped 10 percent to 17.45 euros, the biggest gain in almost two years. The biggest biotech company revenue guidance for 2010 to a range of 91 million euros (120 million) to 94 million euros from a previous range of 89 million euros to 90 million additional sales quoting purchase Sloning Biotechnology GmbH. MorphoSys also has signed a long term partnership with Pfizer Inc. for the U.S. pharmaceutical Sloning to use its technology platform.

HeidelbergCement AG, the world's third largest manufacturer of cement and concrete, slid 1.7 percent to € 45.91, the first retreat this week. The company has been informed by the European Commission is being investigated along with seven other cement producers for suspected antitrust violations, HeidelbergCement said in an emailed statement today. The cement company said it believes it can refute the allegations.

Symrise lost 3.3 percent to € 19.25 after Deutsche Bank cut its rating on the stock to "hold."

Beiersdorf AG fell 5.2 percent to € 43.97, the biggest drop since August. The company plans to invest € 270 000 000 during fiscal year 2012 on skin and body care brands, streamlining and other measures, the company said in a statement. Additional costs in fiscal year 2010 will amount to around 120 million euros, he said.

Interseroh SE increased 20 percent to € 45.19, the biggest increase since April 2003. The recycling company was raised to "hold" from "reduce" in Equinet AG.