German Stocks Climb Second Day as Deutsche Post Advances

German stocks advanced for a second day, following last month’s decline, led by gains in Deutsche Post AG and Commerzbank AG.

Deutsche Post rose to a record after saying operating profit may increase to as much as 5.22 billion euros ($7.2 billion) by 2020. Commerzbank climbed to a two-year high on investor speculation that it may pass a Europe-wide stress test. Deutsche Boerse AG slid 2.2 percent after saying a U.S. court is investigating its Clearstream Banking SA unit for alleged money laundering and violations of Iran-sanction laws.

The DAX Index gained 0.2 percent to 9,623.36 at the close of trading in Frankfurt. The benchmark measure slipped 1.4 percent in March amid tension between Russia and Ukraine. Germany is the largest trading partner in western Europe of both Russia and Ukraine. The HDAX Index advanced 0.2 percent today.

“The overall situation for corporate Germany is remarkably good,” said Matthias Jasper, head of equities at WGZ Bank AG in Dusseldorf, Germany. “Earnings expectations for 2014 are very high, so companies have to deliver. If companies meet expectations, like Deutsche Post did, then we’ll immediately see a good performance of the shares.”

A report from the ADP Research Institute showed that U.S. companies added 191,000 workers in March, after a revised 178,000 increase in February. Economists had forecast a gain of 195,000 for last month.

Factory orders rose 1.6 percent in February, following a revised 1 percent decline in January, data from the Commerce Department showed. Economists had predicted a 1.2 percent gain for February.

Deutsche Post

Deutsche Post advanced 4.6 percent to 28.43 euros. Europe’s largest mail service said in a presentation that earnings before interest and taxes will grow more than an average of 8 percent each year through 2020, reaching 4.92 billion euros to 5.22 billion euros, as it increases its focus on developing markets and parcel shipments abroad.

Commerzbank rose 1.9 percent to 14.09 euros. Germany’s second-largest bank advanced as some investors speculated that Chief Executive Officer Martin Blessing may have taken sufficient steps to pass a Europe-wide stress test.

“Fears that the stress test could reveal holes or cause problems for the bank appear to be declining,” said Michael Seufert, a bank analyst at Nord/LB in Hannover. “Some investors see a turnaround story.”

Deutsche Bank AG, Germany’s biggest lender, gained 0.8 percent to 33.32 euros.

BMW Sales

Bayerische Motoren Werke AG added 0.6 percent to 92.65 euros, paring earlier gains of as much as 1.6 percent. The luxury-car maker reported sales of 32,107 BMW-brand vehicles in the U.S. last month, an increase of 19 percent from a year earlier, led by its mid-size sedans and SUVs.

Nordex SE, a maker of wind turbines, rallied 9.5 percent to 13.15 euros, its highest price since November. Germany will allow more onshore wind projects and ease cuts to offshore wind-power subsidies, Economy Minister Sigmar Gabriel said after a meeting with Chancellor Angela Merkel and state leaders.

Deutsche Boerse lost 2.2 percent to 56.59 euros after saying that the U.S. Attorney for the Southern District of New York is investigating Clearstream regarding alleged violations of U.S. money-laundering and Iran-sanction laws. Deutsche Boerse said Clearstream will co-operate with the probe, which is at a very early stage.

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