European stocks were little changed before a payrolls report in the world’s largest economy.

The Bundesbank slashed its forecast for economic expansion in Germany next year after the sovereign debt crisis pushed the euro area into recession and global growth slowed.

The Frankfurt-based Bundesbank cut its 2013 projection to 0.4 percent from the 1.6 percent predicted in June and said Europe’s largest economy will grow 0.7 percent this year, down from its previous forecast of 1 percent. The economy will contract in the fourth quarter and stagnate in the first, the Bundesbank said. It will expand 1.9 percent in 2014, according to the new forecasts.

Berkeley Group gained 4.2 percent to 1,719 pence after it said first-half profit rose to 107.5 million pounds ($173 million) from 74 million pounds a year earlier, as it sold more homes at wider margins.

Deutsche Telekom will step up investments in the U.S. and Germany for faster networks to tap demand for new data services, the company said after the market closed yesterday.

FTSE 100 5,896.1 -5.32 -0.09%

CAC 40 3,596.53 -5.12 -0.14%

DAX 7,522.52 -12.02 -0.16%