German Stocks Fluctuate; BMW Falls as Volkswagen, K+S Advance

By Julie Cruz

Oct. 5 (Bloomberg) -- German stocks swung between gains and losses as Nouriel Roubini’s forecast that equity markets may drop in the coming months helped offset speculation a report today may show U.S. service industries stabilized in September.

The benchmark DAX Index fell 0.1 percent to 5,464.66 as of 9:24 a.m. in Frankfurt, after rising as much as 0.2 percent earlier. The measure has dropped 4.7 percent from this year’s high on Sept. 28 amid concern share prices have outpaced the prospects for economic growth and corporate earnings.

New York University Professor Roubini, who predicted the financial crisis, said in an interview Oct. 3 that stock and commodity markets may drop in coming months as the gradual pace of the economic recovery disappoints investors.

The Institute for Supply Management’s index of non- manufacturing businesses, which reflects almost 90 percent of the economy, probably rose to 50 from 48.4 in August, according to the median of 64 forecasts in a Bloomberg News survey. Fifty is the dividing line between expansion and contraction.

Bayerische Motoren Werke AG lost 1.4 percent to 31.39 euros as Commerzbank AG cut its recommendation for the world’s biggest maker of luxury cars to “hold.” Daimler AG, the second- largest, slipped 0.9 percent to 32.50 euros.

Volkswagen AG, Europe’s biggest carmaker, added 1.2 percent to 110.77, the biggest advance among the 30 DAX stocks. K+S AG, the region’s biggest producer of potash, climbed 1.1 percent to 36.70 euros.

Solarworld AG rallied 2.8 percent to 15.60 euros, ending two days of losses. The solar company is adding 350 megawatts of production capacity at its Hillsboro site in Oregon because of “good growth prospects” in the U.S.

MediGene AG rose 1.6 percent to 5.03 euros, the first gain in three days. The company obtained an additional patent from the European Patent Office on the manufacturing process for its EndoTAG-1 drug.

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