Bloomberg News

German Stocks Advance as Exports, Output Rise; Banks Gain

September 07, 2012

German stocks advanced to their highest in more than a year, extending yesterday’s surge, as exports and industrial production unexpectedly rose in July.

Deutsche Bank AG (DBK) and Commerzbank AG (CBK), Germany’s two largest lenders, rose at least 5 percent each. Bayerische Motoren Werke AG (BMW) climbed 1.4 percent. Deutsche Post AG (DPW) sank 3.6 percent as KfW Group sold a 5 percent stake in Europe’s largest mail carrier.

The DAX rose 0.7 percent to 7,214.50 at the close of trading in Frankfurt, the highest level since July 27, 2011. The gauge jumped the most in a month yesterday after European Central Bank President Mario Draghi said policy makers agreed to an unlimited bond-buying program to regain control of interest rates in the region and stem the debt crisis. The broader HDAX Index advanced 0.6 percent today.

“After Mario Draghi delivered yesterday, we saw a new buy trading signal and that is confirmed today,” said Petra Grafin von Kerssenbrock, a technical analyst at Commerzbank in Frankfurt. “The potential of this trading buy signal is 7,250 to 7,300. We could have highs that lead to the 7,600 level. The discount from the banks and insurance sectors is being worked out of prices, and the positive sentiment remains intact.”

The volume of shares changing hands on the DAX (DAX) was more than twice the average of the last 30 days, according to data compiled by Bloomberg.

Exports Rise

German exports, adjusted for work days and seasonal changes, increased 0.5 percent from June, when they fell 1.4 percent, the Federal Statistics Office in Wiesbaden said today. Economists had forecast a 0.5 percent decline, according to the median of 12 estimates in a Bloomberg News survey. Imports gained 0.9 percent from June.

Industrial production unexpectedly rose in July as output of investment goods increased. Production rose 1.3 percent from June, when it fell a revised 0.4 percent, the Economy Ministry in Berlin said today. Economists forecast unchanged production, the median of 39 estimates in a Bloomberg News survey showed.

U.S. payrolls rose less than projected in August and the unemployment rate declined as more Americans left the labor force, indicating the labor market is stagnating.

The economy added 96,000 workers last month following a revised 141,000 rise in July that was smaller than initially estimated, Labor Department figures showed today in Washington. The median estimate of 92 economists surveyed by Bloomberg called for a gain of 130,000. Unemployment unexpectedly fell to 8.1 percent, and hourly earnings were unchanged.

Banks Gain

Deutsche Bank rose 5.3 percent to 31.36 euros. Commerzbank added 6.7 percent to 1.39 euros. A gauge of banking stocks posted the second-biggest gain of the 19 industry groups in the Stoxx 600 Europe Index.

BMW, the largest maker of luxury cars, gained 1.4 percent to 58.03 euros.

Deutsche Boerse AG, which owns the Frankfurt stock exchange and Clearstream, Europe’s second-biggest securities-settlement company, advanced 4 percent to 42.43 euros. Clearstream said that the value of customer assets it holds rose 3 percent to 11.2 trillion euros ($14.3 trillion) in August.

Deutz AG, an engine maker, jumped 7 percent to 3.30 euros. Deutz spokesman Christian Krupp said that he had no knowledge of rumors that the company may be taken over.

Deutsche Post slid 3.6 percent to 15.40 euros. Germany’s state-owned development bank sold a 5 percent stake in the mail carrier for 924 million euros. KfW sold 60 million shares for 15.40 euros per share, the Frankfurt-based lender said in a statement today.

Continental AG (CON) sank 1.4 percent to 80.92 euros. UBS AG cut its recommendation on Europe’s second-largest auto-parts maker to neutral from buy, saying further margin expansion is limited. UBS also said the European Union auto-supplier sector is its least preferred sub-category of the industry.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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