German Stocks Rebound From 3-Month Low; Deutsche Bank Advances

May 26 (Bloomberg) — German stocks gained, with the benchmark DAX Index rebounding from a three-month low, as carmakers and steelmakers rallied.

Volkswagen AG and Daimler AG climbed more than 3 percent. ThyssenKrupp AG and Salzgitter AG followed metal prices higher. Aixtron AG rose 6.9 percent as Equinet AG recommended buying the shares.

The DAX rallied 2.2 percent to 5,791.92 as of 2:09 p.m. in Frankfurt, ending the longest losing streak since October. The gauge is still 8.5 percent below its April 26 high on concern the sovereign-debt crisis in Europe will grow. The broader HDAX Index rose 2.3 percent today.

“The environment is not as bad as the market seems to have believed it was in the last couple of days,” said Raimund Saxinger, a Frankfurt-based fund manager at Frankfurt Trust, which oversees about $22 billion. “The retreat was overdone.”

The Organization for Economic Cooperation and Development raised its growth forecasts for this year and next as emerging economies such as China outpace debt-burdened developed countries to drive the global expansion.

The economy of the OECD’s 30 members will grow 2.7 percent this year, more than the 1.9 percent predicted in November, the Paris-based group said today. Including non-members such as China, the global economy will expand 4.6 percent this year and 4.5 percent in 2011, compared with an average of 3.7 percent during the decade through 2006.

VW Gains

Volkswagen’s preferred shares increased 4.2 percent to 68.80 euros. Volkswagen’s joint ventures in China with PSA Peugeot Citroen will benefit as a weaker euro reduces the cost of components imported from Europe, Nomura Holdings Inc. analysts said.

The euro weakened to $1.2321 at 7:03 a.m. in New York, from $1.2345 yesterday. It touched $1.2144 on May 19, the lowest since April 2006. Europe’s currency dropped to 111.19 yen, from 111.39. It slid to 108.84 yen yesterday, the least since November 2001.

Daimler, the world’s second-biggest maker of luxury cars, rose 3.5 percent to 38.48 euros. The Stoxx 600 Automobiles & Parts Index advanced as much as 3.7 percent, among the best performers in the benchmark Stoxx Europe 600 Index.

ThyssenKrupp gained 4.4 percent to 21.25 euros as aluminum, copper, lead, nickel, tin and zinc all rose on the London Metal Exchange. Salzgitter advanced 4.6 percent to 51.35 euros as ING Group NV raised its recommendation on the stock to “hold” from “sell.”

Aixtron rallied 6.9 percent to 20.95 euros after yesterday plunging the most since October 2008. The maker of equipment used to produce LED screens was raised to “buy” from “accumulate” at Equinet, which said “China still seeks to build a LED industry.”

Deutsche Telekom, Q-Cells

Deutsche Telekom AG advanced 1.8 percent to 8.95 euros, the first advance in four trading sessions. Europe’s biggest phone company was raised to “overweight” from “neutral” at JPMorgan Chase & Co.

Q-Cells SE rose 4.7 percent to 4.85 euros. The solar company has started selling solar-power systems at lower prices than rivals Solarworld AG and Conergy AG, the Financial Times Deutschland reported, citing an interview with Chief Financial Officer Nedim Cen.

Consumer confidence in Europe’s largest economy declined after the Greek debt crisis raised concern about the region’s growth outlook. The GfK AG market research company in Nuremberg said its sentiment index, based on a survey of about 2,000 people, will slide to 3.5 points in June from a revised 3.7 points this month.

To contact the reporter on this story: Julie Cruz in Frankfurt at jcruz6@bloomberg.net .

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