German stocks rose for a second day after ....

German stocks rose for a second day after China abstained from raising interest rates when inflation rose and European leaders prepared to discuss a permanent mechanism to help the most indebted countries.

Automakers Volkswagen AG and Bayerische Motoren Werke AG rose 2.5 percent and 1.1 percent respectively. ThyssenKrupp AG, Europe's largest steelmaker, rose 2.9 percent and K + S AG, the region's largest supplier of potash, rose 1.7 percent.

The DAX index advanced 0.3 percent to 7026.08 at 3:45 pm in Frankfurt, heading for its highest closing level since May 2008. The index has risen 18 percent in 2010, increased corporate profits, the Federal Reserve announced a bonus program of 600 billion U.S. dollars to purchase to help the U.S. economic recovery and rescued the European Union, Greece and Ireland. HdaX The broader index rose 0.4 percent today.

Consumer prices in China rose 5.1 percent in November, a report by the statistics office showed on December 11. A measure of the cost of wholesale sales rose 6.1 percent over the 28 estimates in a survey of economists. Still, the central bank held off the weekend in motion rates predicted by companies including UBS AG and Mizuho Securities Asia Ltd.

"China must be careful not to leave bubbles of development," said Fulvio Maccarone, chief investment officer of Bank of China (Switzerland) Fund Management SA. "If you wait you can see China's attempts to reduce the pressure."

Permanent Mechanism

Union leaders this week to discuss the creation of a permanent mechanism to underpin the most indebted countries in the European Central Bank is developing plans to help the weakest lenders in the region.

At a summit in Brussels on December 16 and 17, the group will face skepticism from investors about their willingness to stop a sovereign debt crisis led to bailouts for Greece and Ireland, and threatens to spread.

Volkswagen rose 2.5 percent to € 132.2 and BMW rose 1.1 percent to € 63.19. An indicator of automobile manufacturers in the region Europe Stoxx 600 Index added one percent.

ThyssenKrupp, which last week announced a new order to supply elevators and escalators for 96 railway stations in China, rose 2.9 percent to € 31.09.

K + S rose 1.7 percent to € 54.01 after HSBC Holdings Plc raised its estimate of the share price to 61 euros from 58 euros. Jesko Mayer-Wegelin analysts has an "overweight" on stocks.

Beisersdorf AG, the maker of Nivea skin cream, lost 2.3 percent to € 42.97 ahead of a strategy presentation on 15 December. "We expect consensus earnings for 2011 to be under pressure," wrote Alex Molloy, an analyst at Credit Suisse Group AG, in a note to clients.

Deutsche Boerse AG, the largest securities market in Europe, added 1.5 percent to € 50.70. "Improving the investment fund equity and hedge fund flows must be based on improved volumes and revenue recovery," wrote Rupak Ghose, an analyst at Credit Suisse, in a note to clients.