German shares close higher, boosted by lower oil prices, UPDATE

German shares were higher at the close with dealers saying local indices were benefiting from continuing easing oil prices and gains in the early Wall Street trading session.

Adidas (Xetra: 500340 - news) raced ahead atop a large group of gainers after the sportswear maker released solid quarterly figures.

The DAX was up 168.89 points or 2.66 percent to 6,518.70 at the close, having traded between 6,342.93 and 6,532.09.

The MDAX added 80.02 points or 0.99 percent to 8,129.78, while the TecDAX (Xetra: news) rose 13.95 points or 1.87 percent to 761.78.

DAX (Xetra: news) futures added 170.00 points or 2.66 percent to 6,561.00, while bund futures gained 0.32 points or 0.28 percent to 112.94. The euro traded at $1.5464, compared with $1.5489 in afternoon deals.

Traders pointed to lower oil prices helping automakers and export-intensive stocks.

Oil prices kept falling on Tuesday, sinking as low as $118 a barrel on growing concerns that a U.S. economic slowdown and high energy costs are curbing consumer demand for fuel, one day after plunging as much as $5 a barrel.

'You could already see oil prices falling overnight, but it appears as if the market was a bit slow to react and we are now seeing the DAX recover due to the lower prices,' said a Frankfurt-based trader.

Wall Street shares opened higher, but investors will be casting an eye on the U.S. Federal Reserve rate decision later today. The lending body is expected to keep its benchmark federal funds rate steady at 2 percent.

Leading blue chips higher, Adidas surged 2.94 euros or 7.66 percent to 41.31 as local dealers said the sports equipment manufacturer released strong second-quarter figures, reiterated key top- and bottom-line and slightly increased its gross margin and EBIT margin guidance.

Infineon (Xetra: 623100 - news) was 0.345 euros or 6.87 percent higher at 5.365, after Deutsche Bank (Frankfurt: DB9999 - news) initiated coverage with a 'buy' rating and 7.0 euros per share target, saying the chipmaker's currently depressed profitability should recover thanks to a restructuring program and an organic wireless profitability turnaround.

Lufthansa (Xetra: 823212 - news) shares gained 0.93 euros or 6.40 percent to 15.47, helped by lower oil prices and after the airline said on Monday it will seek damages from pilot union Cockpit should the pilots go ahead with plans to stage a strike this week.

Deutsche Bank was 3.36 euros or 5.81 percent stronger at 61.19 at the top of a group of financial titles, which were in demand today.

Allianz rose 5.33 euros or 4.90 percent to 114.05 after a newswire report said that China Development Bank (CDB) could make a bid for the financial services company's Dresdner Bank unit, though traders and analysts expressed skepticism.

At the other end of the DAX, E.ON slipped 1.15 euros or 0.94 percent to 121.30 and Thyssenkrupp (Xetra: 750000 - news) lost 0.03 euros or 0.09 percent to 34.67, as the session's only two decliners.

Over on the MDAX (Xetra: news) , Pfleiderer (Xetra: 676474 - news) rose 1.04 euros or 12.94 percent to 9.08.

MTU Aero Engines (Xetra: A0D9PT - news) was 1.87 euros or 9.81 percent higher at 20.94, which traders attributed to oil prices declines.

Heidelberger Druckmaschinen (Xetra: 731400 - news) was 0.25 euros or 2.17 percent higher at 11.75 after the printing specialist said its second-quarter operating profit rose to 698 million euros from last year's 506 million euros, due to a strong performance in most regions and despite higher raw material costs.

At the other end of the index, K+S (Xetra: 716200 - news) retreated 4.57 euros or 6.32 percent to 67.78, as the index's worst performer.

Beiersdorf (Xetra: 520000 - news) was 1.64 euros or 3.98 percent lower at 39.54, after the cosmetics specialist released second-quarter figures that disappointed across the board, especially with weak growth and gross margins.

Over on the TecDAX, Qiagen (NASDAQ: QGEN - news) was 0.87 euros or 7.29 percent stronger at 12.81, helped by consensus-beating quarterly figures.

Freenet (Xetra: A0EAMM - news) was the worst performer among tech stocks, down 0.59 euros or 5.10 percent at 10.97, after its second-quarter figures disappointed.