German Stocks Gain as Deutsche Boerse Rises; Adidas Falls

German stocks advanced, after yesterday tumbling the most in four months, as investors awaited the results of Greece’s debt swap and a report showed U.S. companies added more jobs in February than estimated.

Deutsche Bank AG and Commerzbank AG, the country’s two biggest lenders, rose. Deutsche Boerse AG gained after UBS AG advised buying the shares. Adidas AG, the world’s second-largest sporting-goods maker, slid 3 percent after forecasting more modest profit growth in 2012 than analysts had predicted.

The DAX Index gained 38, or 0.6 percent, to 6,671.11 at the close in Frankfurt, rising for the first time in four days. The gauge yesterday fell the most since Nov. 1. The benchmark measure has rallied 13 percent so far this year as the euro area’s leaders took measures to contain the sovereign-debt crisis and as U.S. economic reports exceeded estimates. The broader HDAX Index added 0.7 percent today.

“We don’t think yesterday’s move is the beginning of a longer-term correction, so it rather presents a good opportunity to add to positions,” Patrick Moonen, who helps oversee $500 billion as senior strategist at ING Investment Management in The Hague, Netherlands, said in a telephone interview today.

U.S. companies added 216,000 jobs in February after a revised 173,000 gain in January, according to figures from ADP Employer Services. The median estimate in the Bloomberg News survey called for a 215,000 increase last month.

German Factory Orders

An earlier report showed German factory orders unexpectedly declined in January as foreign demand slumped. Orders, adjusted for seasonal swings and inflation, fell 2.7 percent from December, the Economy Ministry in Berlin said. Economists had predicted a 0.6 percent increase, according to the median of 37 estimates in a Bloomberg News survey.

The VDAX Index, which measures the cost of DAX options, soared 18.5 percent yesterday, for its biggest increase since November as shares plunged across Europe.

“We have had a good run based on good economic figures from the U.S.,” said Mark Glazener, head of equity investments at Robeco Groep NV in Rotterdam, which manages 171 billion euros ($225 billion). “We’ll see the market more sideways from now on, with more volatility. You should buy on the dips and sell on the highs. Until further notice, we have seen the best.”

Investors holding 58 percent of the Greek bonds eligible for the nation’s debt swap have said that they’ll participate, putting the country on the verge of the biggest sovereign-debt restructuring in history.

Collective-Action Clauses

The country’s government, which set a 75 percent threshold for proceeding with the transaction, said it will use collective-action clauses to force holders of Greek-law bonds to accept the swap if it receives sufficient consent from investors. The exchange runs until March 8.

Commerzbank added 4.2 percent to 1.85 euros. Deutsche Bank climbed 2 percent to 33.98 euros.

Deutsche Boerse, blocked from buying NYSE Euronext by the European Commission last month, rose 2.3 percent to 47.01 euros. UBS recommended buying the stock, which fell 12 percent between Feb. 20 and yesterday, saying concerns that a proposed financial transaction tax will hurt revenue are overdone.

Singulus Technologies AG, which makes optical disc production lines for CDs, added 3.6 percent to 2.53 euros. The company said it has received two new orders in the semiconductor segment and its order intake for the year now exceeds 13 million euros.

Celesio, Adidas

Celesio AG climbed 1.2 percent to 13.80 euros. Shares in the drug retailer were raised to “buy” from “neutral” at Nomura Holdings Inc.

Adidas retreated 3 percent to 56 euros after forecasting 2012 net income that fell short of analysts’ estimates. Profit will rise to between 736 million euros and 770 million euros this year, Katja Schreiber, a spokeswoman for the Herzogenaurach, Germany-based company said today. That’s less than the 780.6 million-euro average of seven analysts’ estimates compiled by Bloomberg.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE