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German Stocks Advance; BMW, Fresenius Rise as Metro Declines

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Oct. 29 (Bloomberg) -- German stocks rose, sending the DAX Index to its biggest monthly gain since March, amid speculation that faster U.S. growth won’t prevent the Federal Reserve announcing additional stimulus measures next week.

Bayerische Motoren Werke AG rose 3.3 percent as Goldman Sachs Group Inc. recommended buying the shares. Fresenius SE climbed 3.7 percent to a record as Deutsche Bank AG lifted its price estimate on the stock. Metro AG and Porsche SE retreated as analysts downgraded the shares. MorphoSys AG sank 1.9 percent after third-quarter profit declined.

The DAX rose 0.1 percent to 6,601.37 at the 5.30 p.m. close in Frankfurt. The measure has rallied 6 percent this month amid speculation policy makers at the Fed will announce another round of asset purchases at their November meeting in a bid to jumpstart economic growth. The broader HDAX Index also gained 0.1 percent today.

“The market is not surprised by any of today’s GDP data,” said Daniel Weston, Munich-based portfolio adviser at Schroeder Equities GmbH. “It is the quantitative easing announcement next week that will set a direction for the markets. We do not think the Fed will disappoint.”

U.S. Growth

The U.S. economy grew at a 2 percent annual rate in the third quarter as consumer spending climbed the most in almost four years, a report showed today. The increase in gross domestic product matched the median forecast of economists surveyed by Bloomberg News and followed a 1.7 percent gain the prior three months, according to Commerce Department figures.

The rate of growth is short of what’s needed to cut a jobless rate stuck near 10 percent, a concern that may lead Fed policy makers next week to pump more money into the world’s largest economy. The GDP estimate is the first of three for the quarter, with revisions in November and December when more information becomes available.

Of the 24 companies in the HDAX that have announced results since Oct. 7, 58 percent have beaten analyst estimates for per-share income, according to data compiled by Bloomberg.

BMW, the world’s biggest maker of luxury cars, jumped 3.3 percent to 51.51 euros as Goldman Sachs raised its recommendation to “buy.” Rival Daimler AG added 1 percent to 47.43 euros.

Fresenius preferred shares rose 3.7 percent to 64.41 euros, the highest close on record. Deutsche Bank lifted its price forecast on the parent company of the world’s biggest provider of kidney dialysis by 10 percent to 75 euros.

Metro, Porsche

Metro, Germany’s biggest retailer, tumbled 1.6 percent to 50.36 euros as HSBC Holdings Plc cut its recommendation on the stock to “neutral” from “overweight.”

Porsche preferred shares fell 1 percent to 36.82 euros as the carmaker had its rating reduced to “neutral” from “buy” at UBS AG.

MorphoSys slumped 1.9 percent to 17.22 euros. The biotechnology company reported a decline in third-quarter net income to 1.4 million euros ($1.9 million), from 2.6 million euros in the year-earlier quarter.

Bilfinger Berger SE slid 3.5 percent to 52.33 euros as Germany’s second-largest construction company appointed former Hesse state premier Roland Koch as chief executive officer, succeeding Herbert Bodner. The appointment will be effective from July 1, 2011.

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

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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