German stocks advance for fourth day, led by BMW, Commerzbank
Thursday, 10 September 2009
BERLIN, Sept. 9 (Bloomberg): German stocks gained for a fourth day as analysts recommended Bayerische Motoren Werke AG, helping offset concern share prices have outpaced the outlook for an economic recovery following a six-month rally.
The benchmark DAX Index added 0.5 per cent to 5,509.43 as of 11:58 a.m. in Frankfurt, having fallen as much as 0.6 per cent earlier. A 50 per cent rebound since March 6 has left the gauge valued at about 45.9 times its companies' earnings, near the most expensive level since December 2003, according to weekly Bloomberg data. The broader HDAX Index rose 0.5 per cent today.
European Central Bank President Jean-Claude Trichet told reporters in Brussels today that while the financial crisis is not yet over, it's important for policy makers to consider how they will withdraw economic stimulus measures.
The German economy will contract 5 per cent this year before growing 1.5 per cent in 2010, the BDB association of private banks said today in its latest outlook on the economy. Separately, the Kiel Institute for World Economics forecast the country's economy will shrink 4.9 per cent in 2009 before expanding 1 per cent next year.
BMW rallied 6.4 per cent to 34.04 euros after the biggest maker of luxury cars was raised to "buy" from "hold" at Royal Bank of Scotland Group Plc, while Morgan Stanley lifted its stance to "overweight" from "underweight."
Separately, BMW and Daimler AG's Mercedes-Benz unit are considering building a joint transmission plant in the US, expanding on their cooperation in purchasing. Marc Binder, a spokesman for Mercedes-Benz Cars in Stuttgart, Germany today confirmed Daimler Chief Executive Officer Dieter Zetsche's comments in an interview published by Sueddeutsche Zeitung.
Daimler gained 2.1 per cent to 32.88 euros.
Commerzbank AG, Germany's second-biggest bank, rose 6.5 per cent to 8.08 euros. The company is returning all its remaining debt guarantees it received from Germany's Soffin bank-rescue fund, Chief Executive Officer Martin Blessing said at a banking conference in Frankfurt today.
Adidas AG climbed 3.6 per cent to 33.76 euros. The world's second-largest sporting-goods maker had its share-price estimate raised 47 per cent to 38.50 euros at Goldman Sachs Group Inc.
ThyssenKrupp AG slipped 1.1 per cent to 23.13 euros. Germany's biggest steelmaker may post a pretax loss including one-time items of more than 2 billion euros ($2.9 billion) in the current fiscal year, Die Welt reported, without saying where it got the information.
The company also denied a report in Handelsblatt and said it isn't selling its Emden, Germany-based Nordseewerke unit to Siag Schaaf AG.
The benchmark DAX Index added 0.5 per cent to 5,509.43 as of 11:58 a.m. in Frankfurt, having fallen as much as 0.6 per cent earlier. A 50 per cent rebound since March 6 has left the gauge valued at about 45.9 times its companies' earnings, near the most expensive level since December 2003, according to weekly Bloomberg data. The broader HDAX Index rose 0.5 per cent today.
European Central Bank President Jean-Claude Trichet told reporters in Brussels today that while the financial crisis is not yet over, it's important for policy makers to consider how they will withdraw economic stimulus measures.
The German economy will contract 5 per cent this year before growing 1.5 per cent in 2010, the BDB association of private banks said today in its latest outlook on the economy. Separately, the Kiel Institute for World Economics forecast the country's economy will shrink 4.9 per cent in 2009 before expanding 1 per cent next year.
BMW rallied 6.4 per cent to 34.04 euros after the biggest maker of luxury cars was raised to "buy" from "hold" at Royal Bank of Scotland Group Plc, while Morgan Stanley lifted its stance to "overweight" from "underweight."
Separately, BMW and Daimler AG's Mercedes-Benz unit are considering building a joint transmission plant in the US, expanding on their cooperation in purchasing. Marc Binder, a spokesman for Mercedes-Benz Cars in Stuttgart, Germany today confirmed Daimler Chief Executive Officer Dieter Zetsche's comments in an interview published by Sueddeutsche Zeitung.
Daimler gained 2.1 per cent to 32.88 euros.
Commerzbank AG, Germany's second-biggest bank, rose 6.5 per cent to 8.08 euros. The company is returning all its remaining debt guarantees it received from Germany's Soffin bank-rescue fund, Chief Executive Officer Martin Blessing said at a banking conference in Frankfurt today.
Adidas AG climbed 3.6 per cent to 33.76 euros. The world's second-largest sporting-goods maker had its share-price estimate raised 47 per cent to 38.50 euros at Goldman Sachs Group Inc.
ThyssenKrupp AG slipped 1.1 per cent to 23.13 euros. Germany's biggest steelmaker may post a pretax loss including one-time items of more than 2 billion euros ($2.9 billion) in the current fiscal year, Die Welt reported, without saying where it got the information.
The company also denied a report in Handelsblatt and said it isn't selling its Emden, Germany-based Nordseewerke unit to Siag Schaaf AG.