German Stocks Climb on U.S. Earnings Optimism

German stocks advanced on growing optimism over U.S. corporate earnings and as a report showed American industrial production climbed in December.

Adidas AG climbed 2.6 percent after Nomura Holdings Inc. said the shares have the potential to rally further. Allianz SE and Munich Re dropped at least 2 percent, following a gauge of European insurers lower.

The DAX Index rose 0.2 percent to 7,691.13 at the close in Frankfurt. The benchmark index has gained 1 percent so far this year, still remaining the worst performer among the 24 developed markets tracked by Bloomberg. The broader HDAX Index also increased 0.2 percent today.

Goldman Sachs Group Inc. reported fourth-quarter earnings of $5.60 a share, beating the average analyst estimate of $3.66. About 74 percent of the 39 companies listed in the Standard & Poor’s 500 Index that have reported quarterly results so far beat analyst estimates. Profits for the quarter grew 2.5 percent, according to analyst estimates compiled by Bloomberg.

Output from U.S. factories, mines and utilities rose 0.3 percent last month, after a revised 1 percent gain in November, data from the Federal Reserve showed. That matched the median forecast in a Bloomberg survey.

Currency Concern

The euro’s value is “dangerously high,” Juncker, who leads a group of finance ministers in the 17-member bloc, told an annual gathering of business leaders in Luxembourg late yesterday. The currency, which has gained 8 percent against the U.S. dollar in the last six months, declined after his comments.

Germany’s Economic Ministry said growth in its gross domestic product will slow to 0.4 percent this year from 0.7 percent in 2012.

The World Bank yesterday projected the world economy will expand 2.4 percent this year, compared with a June forecast of 3 percent and 2012 growth of 2.3 percent. The Washington-based bank predicted a second year of contraction in the euro region, according to its twice-yearly report released yesterday.

European car sales in December fell the most in more than two years, a report showed. Registrations plunged 16 percent to 838,428 vehicles last month from 997,842 a year earlier, the Brussels-based European Automobile Manufacturers’ Association, or ACEA, said. Deliveries in Germany fell 16 percent.

Adidas advanced 2.6 percent to 69.97 euros after Nomura Holdings said investors should buy the stock if the price weakens further, citing an “upside potential” of 25 percent to the target level.

TUI AG jumped 8.8 percent to 8.05 euros. TUI Travel Plc, its U.K. subsidiary, said it’s in talks to merge with the German parent in an all-share transaction.

Allianz SE declined 2 percent to 103.55 euros and Munich Re slipped 2.4 percent to 131.95 euros. Gauges of European lenders and insurers were among the worst-performing industry groups on the Stoxx 600.

The volume of shares changing hands on DAX-listed companies was 5.3 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.

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