DAX Rises for Second Day, Led by Hypo Real; Conergy Shares Jump

Germany's benchmark DAX Index rose for a second day, led by Hypo Real Estate Holding AG, after U.S. stocks staged the biggest two-day rally in five years.

Conergy AG jumped after Deutsche Bank AG raised its recommendation on the stock.

The DAX Index increased 51.68, or 0.7 percent, to 7,775.34 at 9:54 a.m. in Frankfurt. DAX futures expiring in December gained 28, or 0.4 percent, to 7,778. The HDAX Index of the country's 110 biggest companies increased 0.8 percent.

``One has to keep in mind where these stocks come from, they have been oversold over the past months,'' said Matthias Jasper, head of equities at WGZ Bank in Dusseldorf.

U.S. stocks yesterday rose on expectations for another interest rate cut. The Dow Jones Europe Stoxx Banks Index climbed 1.4 percent.

Hypo Real Estate gained 1.55 euros, or 4.4 percent, to 37 euros. Commerzbank AG, Germany's second-largest lender, rose 40 cents, or 1.6 percent, to 25.94 euros. Allianz SE, Europe's largest insurer, climbed 2.29 euros, or 1.7 percent, to 141.26 euros. Deutsche Bank AG and Munich RE also added advanced.

Conergy rallied 3.40 euros, or 15 percent, to 25.80 euros. Deutsche Bank AG raised its recommendation of Germany's largest solar power company from its recommendation from ``sell'' to ``hold,'' citing 8 million euros worth of insider buying in the share by Otto Happel and three board members.
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