German stocks climbed for a third day this week, led by Deutsche Bank AG (DBK) after Citigroup Inc. upgraded European lenders and a report said the region’s banks could avoid part of new capital requirements.
Deutsche Bank, the largest in Germany, rose 1.8 percent in Frankfurt. HeidelbergCement AG gained 1 percent after the company said German business is “going very well.” Wacker Chemie AG (WCH) rallied 4.2 percent, snapping two days of losses as CA Cheuvreux reiterated its “selected list” recommendation.
The benchmark DAX Index (DAX) rose 0.7 percent to 7,163.47 at the 5:30 p.m. close in Frankfurt, trimming this week’s loss to 1.4 percent. The gauge has lost 4.8 percent so far this month as concern mounted that Europe’s sovereign-debt crisis will derail the global economic recovery. The broader HDAX Index (HDAX) gained 0.7 percent today.
“I’m still bullish on equities until the end of the year but we should see more volatile sessions in the summer,” said Robert Halver, head of research at Baader Bank AG in Frankfurt. “We’re still facing the debt crisis, but the liquidity environment is still good.”
Deutsche Bank rallied 1.8 percent to 40.93 euros after Citigroup raised its recommendation for European banks to “overweight,” saying a selloff in share prices over the last three months was an opportunity to buy “stronger” firms. UBS AG also named Deutsche Bank as its preferred investment bank in Europe.
Separately, the Financial Times reported that banks in the European Union could dodge part of the globally agreed new Basel III capital requirements under draft legislation implementing the standards. The newspaper cited unnamed people who have seen the draft.
HeidelbergCement rose 1 percent to 47.66 euros after Chief Executive Officer Bernd Scheifele said ready-mix concrete is showing double-digit growth, Deutsche-Presse Agentur reported, citing an interview.
Wacker Chemie climbed 4.2 percent to 148.80 euros, as CA Cheuvreux reiterated its “select list” recommendation, saying the chemical maker’s capital markets day in London next week may be a “trigger” for the shares.
Pfeiffer Vacuum Technology AG (PFV) surged 7 percent to 86.92 euros after WestLB AG recommended that investors buy the shares, citing a “compelling” valuation.
To contact the reporter on this story: Sarah Jones in London at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Rummer at email@example.com