European Stocks Decline


European stocks retreated for a sixth day and U.S. futures dropped as Deutsche Bank AG reported a fourth-quarter loss and investors speculated financial firms may need to raise more capital.

Deutsche Bank sank more than 10 percent after the German lender said it had a loss of 4.8 billion euros ($6.3 billion). HSBC Holdings Plc tumbled 7.9 percent as Morgan Stanley said Europe’s largest bank by market value may have to raise as much as $30 billion and halve its dividend. Citigroup Inc. fell 2.2 percent in German trading.

The Dow Jones Stoxx 600 Index dropped 1.7 percent to 198.21 at 12:44 p.m. in London, erasing an earlier gain of as much as 0.4 percent. A measure of bank shares slid 5.5 percent, the steepest decline in more than a month.

Europe’s Stoxx 600 has lost 6.6 percent in the past six days as companies from Intel Corp. to Alcoa Inc. and Wal-Mart Stores Inc. spurred concern the profit outlook is worsening and lower commodity prices dragged down oil and metals producers.

The measure is down 45 percent since the beginning of last year as credit losses and writedowns topped $1 trillion in the worst financial crisis since the Great Depression and the U.S., Japan and Europe fell into the first simultaneous recessions since World War II.

National benchmark indexes declined in all 18 western European markets except Belgium. Germany’s DAX retreated 1.8 percent as Commerzbank AG tumbled more than 9 percent. France’s CAC 40 lost 1.8 percent. U.K.’s FTSE 100 dropped 2.1 percent as Anglo American Plc led mining shares lower.

Japanese stocks rebounded from the longest losing streak in two months as higher oil prices lifted energy producers and shippers advanced on increases in fees for transporting commodities. The Nikkei 225 Stock Average added 24.54, or 0.3 percent, to close at 8,438.45 in Tokyo.


TradingEconomics.com, Bloomberg
1/14/2009 5:13:07 AM