German DAX Index Rises, Led by Gains in ThyssenKrupp, Lufthansa

German stocks rose, with the DAX Index trimming its weekly drop, as ThyssenKrupp AG gained after the company announced a reorganization and the U.S. economy added more jobs than forecast in April.

ThyssenKrupp increased the most in two years after Germany’s biggest steelmaker said the reorganization will include the sale or spinoff of units with 10 billion euros ($14.5 billion) in revenue. Deutsche Lufthansa AG, Wincor Nixdorf AG and Vossloh AG rose after analysts recommended buying their shares.

The benchmark DAX Index climbed 1.6 percent to 7,492.25 at the 5:30 p.m. close in Frankfurt. The gauge still retreated 0.3 percent this week as reports showed Germany’s factory orders unexpectedly dropped in March and U.S. jobless claims rose last week. The broader HDAX Index gained 1.5 percent today.

“Payrolls data was the only positive signal of the whole week,” said Markus Wallner, a senior equity strategist at Commerzbank AG in Frankfurt. “I’m relatively positive for the next couple of weeks. The earnings season is good and the DAX should stabilize around 7,400-7,550.”

German stocks extended gains as U.S. payrolls rose by 244,000 workers last month, the biggest increase since May 2010, following a revised 221,000 expansion the prior month, the Labor Department said today in Washington. Economists had projected an April rise of 185,000, according to the median estimate in a Bloomberg News survey. Employment excluding government jobs jumped the most in five years. The jobless rate rose to 9 percent, the first increase since November.

ThyssenKrupp Surges

ThyssenKrupp jumped 8 percent to 32.22 euros, the steepest gain since May 2009. The company said it will separate the stainless-steel business and consider “all options” for the unit. It will also sell units including ThyssenKrupp Waupaca, a U.S. iron-casting business, and a Brazilian automotive-component manufacturer. The businesses affected in the reorganization employ 35,000 people, ThyssenKrupp said.

Lufthansa increased 4.1 percent to 15.27 euros, the biggest gain since August 2009, after UBS AG upgraded Europe’s second-largest airline to “buy” from “hold.”

Wincor Nixdorf rose 3.8 percent to 49.76 euros, the biggest advance in six months, as the maker of banking machines and cash registers was raised to “buy” from “hold” at UniCredit SpA. Vossloh gained for the first time this week, adding 2.7 percent to 94.50 euros. The railroad-equipment maker was upgraded to “buy” from “hold” at UniCredit.

Kloeckner & Co. gained 5 percent to 25.22 euros, the highest price in three months, as the steel distributor was raised to “selected list” from “outperform” at CA Cheuvreux.

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