Sept. 13 (Bloomberg) -- German stocks gained for the first time in three days, with the benchmark DAX Index rebounding from its lowest level since July 2009, as Deutsche Bank AG and Deutsche Boerse AG increased.
The DAX rose 94.03, or 1.9 percent, to 5,166.36 at the 5:30 p.m. close in Frankfurt, having earlier tumbled as much as 2 percent. The gauge is trading at 8 times the estimated earnings of its companies, according to Bloomberg data. The broader HDAX Index added 1.7 percent.
“Some of the cheap prices some stocks are trading at now are slowly becoming irresistible to some traders,” said Markus Huber, head of German sales trading at ETX Capital in London. “As long as there is no fundamental change in regard to the European financial crisis and the stalemate in the USA continues to persist, every recovery should be rather short lived.”
German Chancellor Angela Merkel said that Greece is taking the right steps to get its next bailout payment, warning against allowing a Greek default because of the risk of contagion for other euro-area countries.
Merkel, in a German radio interview today, said that an “uncontrolled insolvency” would further roil markets spooked by the prospect of a Greek default. The euro region has no system for “orderly” insolvency until the permanent rescue fund is established in 2013, she said.
Deutsche Boerse jumped 4.6 percent to 40.06 euros. NYSE Euronext and Deutsche Boerse plan to make about 200 million euros ($274 million), or half of the proposed cost cuts from their combination, through technology and clearing savings, according to a regulatory filing.
Deutsche Bank, Germany’s biggest bank, jumped 8.2 percent to 23.15 euros as banking shares rallied across Europe. Smaller rival Commerzbank AG added 3.8 percent to 1.59 euros.
Bayerische Motoren Werke AG and Daimler AG, the world’s largest makers of luxury cars, advanced 2.1 percent to 51.95 euros and 2.1 percent to 32.43 euros, respectively. Carmakers were among the best performers in the Stoxx Europe 600 Index today, climbing 2 percent as a group.
--Editors: Andrew Rummer, Will Hadfield
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