German Stocks Decline, Led by Deutsche Bank, Metro, Lufthansa

By Henrietta Rumberger

Sept. 10 (Bloomberg) -- German stocks retreated for a second day as concern mounted banks may post more credit-related losses and a jump in oil prices damped the earnings outlook for consumer companies and airlines.

Deutsche Bank AG had its biggest decline this week, leading financial shares lower. Metro AG, the country's largest retailer, and Lufthansa AG, Europe's second-biggest airline, dropped for the first time in three days as crude rebounded in New York.

The benchmark DAX Index slipped 33.11, or 0.5 percent, to 6,200.30 as of 9:48 a.m. in Frankfurt. DAX futures expiring in September decreased 0.5 percent to 6,206.50. The HDAX Index of the country's 110 biggest companies retreated 0.5 percent.

``The banking topic isn't over yet and investors' uncertainty about the industry's future persists,'' said Raimund Saxinger, a senior fund manager at Frankfurt Trust, which oversees the equivalent of $28 billion.

The benchmark index for German equities is down 23 percent this year on concern more than $500 billion in credit-related losses and writedowns at the world's biggest financial firms, slowing economic growth and higher fuel costs will curb earnings.

Lehman Brothers Holdings Inc., the fourth-largest U.S. securities firm, will report third-quarter financial results today at about 7:30 a.m. in New York, a week earlier than planned. The bank, which plunged 45 percent in New York trading yesterday, has been trying to raise capital and shed devalued real-estate assets that saddled the company with $8.2 billion in writedowns and credit losses in the past year. Analysts including Merrill Lynch & Co.'s Guy Moszkowski predict Lehman will report more writedowns and losses today.

`Extremely Nervous'

Deutsche Bank retreated 1.045 euros, or 1.7 percent, to 60.92. Chief Executive Officer Josef Ackermann said financial markets remain ``extremely nervous.''

An economic slowdown ``could lead to the next phase of difficulties for financial markets,'' Ackermann said at a banking conference in Frankfurt today.

Commerzbank AG, Germany's second-largest lender, fell 15 cents, or 0.9 percent, to 12.265 euros. Hypo Real Estate Holding AG, the country's second-biggest commercial-property lender, slipped 13 cents, or 0.8 percent, to 16.70 euros.

Crude oil climbed as much as $1.41, or 1.4 percent, to $104.67 a barrel on the New York Mercantile Exchange after OPEC President Chakib Khelil called on members to stop producing more than the group's set quota.

Metro declined 61 cents, or 1.5 percent, to 39.06 euros. Henkel KGaA, the maker of Persil detergent and Dial soap, lost 25 cents, or 1 percent, to 25.85 euros. Deutsche Lufthansa decreased 12.5 cents, or 0.8 percent, to 15.065 euros.

The following stocks also rose or fell in German markets. Symbols are in parentheses.

Leoni AG (LEO GY) retreated a second day, losing 64 cents, or 2.3 percent, to 27.15 euros. HSBC Holdings Plc downgraded shares of Germany's biggest maker of electrical cables for cars to ``underweight'' from ``neutral.''

ThyssenKrupp AG (TKA GY) gained for a second time this week, adding 31 cents, or 1.1 percent, to 27.43 euros. Germany's largest steelmaker will expand its bearings factory in Slovakia to make parts for wind power stations, Hospodarske Noviny reported.

Tognum AG (TGM GY) added 34 cents, or 2.5 percent, to 14.12 euros, the steepest advance in more than two weeks. The German diesel-engine maker asked Jefferies Group Inc. to handle the sale of its driveshaft unit Rotorion, Financial Times Deutschland reported, citing an unidentified person familiar with the deal. Neither Tognum nor Jefferies would comment, the newspaper said.

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