Bloomberg News

German Stocks Rise as U.S. Creates More Jobs

November 02, 2012

German stocks climbed for a second day as a report showed that the U.S. economy created more jobs last month than estimated.

Beiersdorf AG (BEI) surged 7.2 percent as the company raised its forecast for sales growth this year. Bayerische Motoren Werke AG (BMW) climbed 2.7 percent. Deutsche Bank AG (DBK) fell 1 percent as it will have to increase its capital requirements. Deutsche Telekom AG (DTE) dropped 2.6 percent after a report said it may cut its dividend after next year by as much as a third.

The DAX Index (DAX) added 0.4 percent to 7,363.85 at the close of trading in Frankfurt. The equity benchmark has rallied 23 percent from this year’s low on June 5 as the European Central Bank approved an unlimited bond-buying program and the U.S. Federal Reserve started a third round of asset purchases. The broader HDAX Index also climbed 0.4 percent today.

“The headline number is better than expected,” said Jeremy Batstone-Carr, head of research at Charles Stanley Group Plc in London. “Algorithms have been woken from their torpor and jolted upwards. The jobless rate remains below the 8 percent level, seen as a watershed by some.”

U.S. non-farm payrolls climbed by 171,000 in October, from a revised 148,000 in September, according to a release from the Labor Department. The median estimate of economists in a Bloomberg News survey had called for an increase of 125,000.

The report also showed that private payrolls, which exclude government jobs, climbed by 184,000 last month, following a revised 128,000 gain in September. The median economist forecast had called for an increase of 123,000.

Beiersdorf Forecast

Beiersdorf surged 7.2 percent to 60.70 euros as the maker of Nivea skin cream raised its forecast for sales growth after reporting third-quarter profit that beat analysts’ estimates.

Full-year revenue will increase as much as 4 percent, Hamburg-based Beiersdorf said today, compared with a previous forecast of about 3 percent. Adjusted earnings before interest and taxes rose 30 percent to 185 million euros ($238 million) in the third quarter, exceeding the 170.2 million-euro average of 11 analyst estimates compiled by Bloomberg.

BMW, the largest manufacturer of luxury cars, advanced 2.7 percent to 65 euros.

Continental AG (CON), Europe’s second-largest auto-parts maker, rose 1.4 percent to 78.91 euros. A gauge of carmakers climbed 1.2 percent.

Henkel, Siemens

Henkel AG, the Dusseldorf-based maker of Persil detergent, increased 3.5 percent to 63.65 euros.

Siemens AG gained 1.5 percent to 79.56 euros. Europe’s biggest engineering company will reach the low end of its full- year earnings target when it reports its financial results next week, Handelsblatt reported, citing unidentified people familiar with the figures. The company had cautioned that meeting the target would be difficult.

Deutsche Bank lost 1 percent to 35.62 euros. Germany’s largest lender will have to set aside a capital surcharge of 2.5 percent, according to an updated list published late yesterday by the Financial Stability Board.

Deutsche Telekom dropped 2.6 percent to 8.66 euros. Europe’s second-largest telecommunications company may reduce its dividend, Handelsblatt reported, citing unidentified supervisory board members. The cut would give Chief Executive Officer Rene Obermann more leeway to invest in faster networks and products, according to the report.

Fraport AG slipped 3.4 percent to 44.68 euros as the stock was cut to underperform from buy at Bank of America Corp., meaning that investors should sell the shares.

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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