Germany's DAX Index Erases Gains; Deutsche Post, Daimler Fall

By Henrietta Rumberger

June 24 (Bloomberg) -- German stocks erased earlier gains as Deutsche Post AG and Daimler AG declined. Deutsche Telekom AG, Europe's largest telephone company, led rising shares.

The benchmark DAX Index was little changed at 6,592.18 as of 9:44 a.m. in Frankfurt after climbing as much as 0.4 percent. DAX futures expiring in September slipped 0.1 percent to 6,659. The HDAX Index of the country's 110 biggest companies added less than 0.1 percent to 3,400.55.

German consumer confidence dropped to the lowest in more than two years as soaring energy prices sapped people's purchasing power. GfK AG's index for July, based on a survey of about 2,000 people, declined to 3.9 from a revised 4.7 in June, the Nuremberg-based market-research company said today.

Deutsche Post, Europe's biggest postal service, declined 21 cents, or 1.2 percent, to 17.44 euros. United Parcel Service Inc., the world's largest package-delivery company, lowered its profit forecast because of rising fuel costs and a slowing U.S. economy.

Daimler, the world's second-biggest maker of luxury cars, lost 62 cents, or 1.4 percent, to 42.91 euros.

Deutsche Telekom gained 18 cents, or 1.8 percent, to 10.38 euros. The stock was raised to ``overweight'' from ``equal- weight'' by Morgan Stanley, which said long-term investors ``should begin to build positions.''

To contact the reporter on this story: Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.