German Stocks Advance to Record After U.S. Jobs ReportsTrista Kelley
German stocks climbed, sending the benchmark DAX Index to a record, as investors returned from the Christmas holiday and data showed an improving U.S. jobs market.
Commerzbank AG rose to its highest price since February after the lender told Deutsche Presse-Agentur that its 2013 operating results in its retail division were above expectations. Deutsche Telekom AG advanced to its highest price since 2008 after CNBC reported that it hasn’t decided whether it will sell its T-Mobile US Inc. division.
The DAX increased 1.1 percent to 9,589.39 at the close of trading in Frankfurt. The gauge rose 2 percent this week, its second week of gains after the Federal Reserve’s decision to slow the pace of its bond-buying program increased investors’ confidence in the U.S. economic recovery. The measure has rallied 26 percent this year. The broader HDAX Index added 1 percent today.
“Germany is more or less reflecting the positive performance of the U.S this week over Christmas,” Christoph Hock, an equity sales trader at Alpha Wertpapierhandels GmbH in Frankfurt, said by phone. “You usually see a strong performance in the last few trading days of the year.”
The volume of shares changing hands in DAX-listed companies was 34 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.
In the U.S., a Labor Department report yesterday showed that jobless claims declined by 42,000 to 338,000 in the week ended Dec. 21. The median forecast of 42 economists surveyed by Bloomberg called for a drop to 345,000.
Commerzbank AG rose 2.3 percent to 11.67 euros. Operating results in its retail division were above expectations for the year, Deutsche Presse-Agentur reported today, citing Martin Zielke, head of the bank’s retail operation.
Deutsche Telekom AG advanced 1.3 percent to 12.60 euros. The mobile operator hasn’t made a decision on whether it will sell T-Mobile US, CNBC reported. A possible purchase of the division would likely happen in 2014, CNBC’s David Faber said yesterday.
Deutsche Bank gained 0.7 percent to 34.64 euros, after earlier rising as much as 1.1 percent. The lender and Allstate Corp. settled a suit that accused Germany’s largest bank of misrepresentations and omissions regarding loans backing $185 million in mortgage securities, according to a court filing after the close of trading on Dec. 23.
K+S AG climbed 2.8 percent to 21.98 euros. The potash producer advanced for a fourth day, paring its loss this year to 37 percent. A gauge of chemical companies was among the biggest gainers in the Stoxx 600 Europe Index, rising 1.3 percent. BASF SE, the world’s largest chemical company, rose 1.4 percent to 77.95 euros.