June 3 (Bloomberg) -- German stocks rose, rebounding from a six-week low, as banks rallied after Jean-Claude Juncker said the European Union will approve a new aid plan for Greece, outweighing weaker-than-forecast U.S. jobs data.
Deutsche Bank AG, Germany’s largest lender, and rival Commerzbank AG advanced more than 1.5 percent. ThyssenKrupp AG, the nation’s biggest steelmaker, climbed 2.5 percent. EON AG and RWE AG fell following a report that the utilities will have to lower their sales forecasts.
The benchmark DAX Index gained 0.5 percent to 7,109.03 at the 5:30 p.m. close in Frankfurt. The measure has still declined 0.8 percent this week as Moody’s Investors Service raised Greece’s default risk to 50 percent and U.S. factory orders fell the most in almost a year. The broader HDAX Index rose 0.4 percent today.
The DAX tumbled as much as 0.8 percent earlier today after a report showed U.S. employers added fewer workers in May and unemployment unexpectedly rose to 9.1 percent, underscoring Federal Reserve concerns the expansion is failing to boost the labor market.
Payrolls increased by a less-than-projected 54,000 last month, after a revised 232,000 gain in April that was smaller than initially estimated, Labor Department figures showed. The median forecast in a Bloomberg News survey called for payrolls to rise 165,000.
Deutsche Bank climbed 1.9 percent to 40.88 euros and Commerzbank, Germany’s second-largest lender, increased 4.3 percent to 3.24 euros.
Banks advanced across Europe as Juncker, who leads the group of euro-area finance ministers, said the EU will approve a new aid plan for Greece. The Mediterranean country said a review of its economic progress by EU and International Monetary Fund officials concluded “positively.”
ThyssenKrupp rallied 2.5 percent to 32.77 euros, climbing for the first time in three days as analysts recommended the sector. JPMorgan Chase & Co. said in a report today that investors should buy steelmakers as European prices will pick up in the third quarter.
EON and RWE, Germany’s biggest utilities, declined 1.2 percent to 18.84 euros and 2.7 percent to 38.19 euros, respectively. The Financial Times Deutschland reported that EON, RWE, Energie Baden-Wuerttemberg AG and Vattenfall Europe AG will lose about 3.5 billion euros ($5.1 billion) in sales per year from the permanent shut down of 8 out of Germany’s 17 nuclear power plants. The newspaper cited its own calculations.
EON, RWE Ratings
Moody’s Investors Services placed both companies’ A2/Prime- 1 ratings on review for downgrade while Fitch Ratings placed RWE on rating watch negative.
Roth & Rau AG, a maker of solar-cell production equipment that generates more than half of its revenue in Asia, rallied 3 percent to 22.94 euros.
China Securities Journal today reported the country is planning to double its solar-power generation capacity to 10 gigawatts by the end of 2015, citing an unidentified person. An industry development plan for the five years through 2015 has been submitted to the State Council for approval, the Beijing- based newspaper said.
Separately, Sharp Corp. forecast that its operating profit will rise 23 percent this year on increased earnings from solar power and liquid-crystal displays.
Kabel Deutschland Holding AG rose 1.6 percent to 46.19 euros, climbing for the first time in three days. Goldman Sachs Group Inc. reiterated its “conviction buy” recommendation for the cable operator and raised its price estimate 7.7 percent to 61.50 euros. That’s 35 percent above yesterday’s closing price.
--With assistance from Adria Cimino in Paris. Editors: Andrew Rummer, Will Hadfield
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