German equities rallied on Thursday after encouraging data from the US labour market. Restricting the upswing, the S&P cut Spanish debt rating to one level above ‘junk' status. However, Spanish concerns eased after the IMF head Christine Lagarde stated that indebted eurozone's nations should be granted more time to lower their budget deficit. The DAX Index surged 1.16% and is currently trading at 7,288.87. All but one sector included in the index climbed. The top-gainers were telecommunications ad basic materials. Deutsche Telecom jumped 2.19% while BASF and HeidelbergCement added 1.39% and 1.48%. Financials also joined the rally, with Commerzbank and Deutsche Bank rose 1.91% and 2.82%. On the downside were industrials, with Siemens retreating 0.77%.