German Stocks Rise as U.S. Payrolls Grow; Infineon Climbs

German stocks advanced, paring a weekly loss, as data showed U.S. hiring rose in January after accelerating more than previously estimated at the end of 2012, and manufacturing in the world’s largest economy also expanded.

Infineon Technologies AG gained 3.7 percent as Jefferies Group Inc. upgraded its recommendation on the shares. SAP AG climbed 0.9 percent as a gauge of technology stocks rose the most among the 19 industry groups in the Stoxx Europe 600 Index. Porsche SE added 3 percent as hedge funds agreed not to appeal a court ruling dismissing a case against the carmaker.

The DAX Index rose 0.7 percent to 7,833.39 at the close of trading in Frankfurt, paring its weekly loss to 0.3 percent. The gauge has still gained 2.9 percent this year as U.S. lawmakers agreed on a compromise budget and American companies reported better-than-estimated earnings. The broader HDAX Index added 0.9 percent today.

“The payrolls were encouraging and demonstrate there is momentum in the U.S. economy, despite the fiscal question marks,” Graham Bishop, an equity strategist at Exane BNP Paribas in London, said. “Upward revisions to prior months and another climb in hourly earnings should stand the consumer in good stead.”

The volume of shares changing hands on the DAX was 6.6 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.

U.S. Jobs

U.S. payrolls rose 157,000 in January following a revised 196,000 advance in the prior month and a 247,000 surge in November, Labor Department figures showed today in Washington. The revisions added a total of 127,000 jobs to the employment count in November and December. The jobless rate increased to 7.9 percent from 7.8 percent.

The Institute for Supply Management’s U.S. factory index rose to 53.1 in January from 50.2 a month earlier, the Tempe, Arizona-based group said today. Economists in a Bloomberg survey projected a reading of 50.7 for January, according to the median of 86 forecasts. The dividing line between expansion and contraction is 50.

About 8 percent of German exports are sold to the U.S., according to data from the Federal Statistics Office in Wiesbaden.

Infineon Technologies, Europe’s second-largest semiconductor manufacturer, rose 3.7 percent to 6.89 euros as Jefferies upgraded the stock to buy from hold. Jefferies forecasts a price of 7.94 euros for the shares.

SAP, the largest maker of business-management software, advanced 0.9 percent to 60.91 euros.

Porsche Advances

Porsche rose 3 percent to 66 euros. The carmaker said hedge funds that accused it of concealing a plan to corner the market in Volkswagen AG shares have agreed not to appeal a New York court ruling dismissing the case.

Volkswagen, Europe’s biggest carmaker, added 2.5 percent to 186.65 euros, its highest price in more than twenty years.

Daimler AG climbed 1.3 percent to 43.45 euros. The third-biggest maker of luxury cars agreed to buy a stake in the car unit of Chinese partner Beijing Automotive Group Co. to spur efforts to catch up with competitors in the world’s largest auto market.

The parent of Mercedes-Benz will acquire 12 percent of the car division of the Chinese company, known as BAIC Motor, the Stuttgart, Germany-based manufacturer said today in a statement. The Beijing-based partner will grant Daimler two seats on the unit’s board of directors.

Deutsche Bank

Deutsche Bank AG added 0.8 percent to 38.53 euros. Citigroup upgraded Germany’s largest lender to buy from neutral, citing the success of its deleveraging plan, and lower regulatory and contingency risks. Separately, Mediobanca SpA raised its recommendation on Deutsche Bank’s shares to neutral from underperform.

Lanxess AG advanced 2.3 percent to 63.64 euros as Hauck & Aufhaeuser AG rated the chemical manufacturer new buy, forecasting a target price of 77 euros on the shares.

Talanx AG rose 2.4 percent to 22.90 euros as Goldman Sachs Group Inc. rated the insurer a new buy, saying it expects recent strong growth to continue into 2014.

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