(Updates with full report)
FRANKFURT (Thomson Financial) - German shares closed lower, tracking Wall Street as a fresh rise in oil prices weighed on sentiment, and as major indices corrected from moderate gains Wednesday in quiet European trade.
The DAX closed 80.84 points or 1.28 percent lower at 6,236.96 points, having traded between 6,219.10 and 6,293.48.
The MDAX dropped 92.72 points or 1.11 percent to 8,228.16 points, while the TecDAX added 4.61 points or 0.58 percent to 801.36 points.
DAX futures retreated 72.00 points or 1.14 percent to 6,261.00 points, while bund futures were down 0.60 points or 0.52 percent at 114.16 points. The euro traded at $1.4876, compared with $1.4756 in London morning trade.
On Wall Street, stocks slipped in early trade amid growing anxiety over the financial sector, particularly over the embattled investment bank Lehman Brothers Holdings Inc. after Citigroup predicted that the bank will write down its assets by $2.9 billion.
Further hurting sentiment, oil prices rose to $117 per barrel, climbing for a third straight session as Washington's missile shield deal with Poland drew a sharp response from Russia.
In addition, leading U.S. economic indicators fell more than expected. The Conference Board said its July consumer confidence index fell 0.7 percent, far more than the average economist forecast of a 0.2 percent decline.
In Germany, BMW led falling blue-chip stocks lower, falling 0.97 euro or 3.38 percent to 27.73 euros.
Henkel slipped 0.86 euro or 3.19 percent to 26.10 euros.
Financials were a weak feature, with Hypo Real Estate falling 0.46 euro or 2.80 percent to 15.94 euros, while Commerzbank eased 0.54 euro or 2.66 percent to 19.62 euro.
Deutsche Postbank closed 0.81 euro or 1.98 percent lower at 40.19 euros and Deutsche Bank was down 1.09 euros or 1.91 percent at 55.96 euros.
At the other end of the large-cap index, Merck KGaA rose 0.66 euro or 0.88 percent to 75.58 euros, making it one of only four rising stocks, as the top performer on the DAX after UBS started the German drugmaker with a 'buy' rating and a price target of 100 euros.
Continental gained 0.31 euro or 0.42 percent to 73.80 euros after the tyre and auto parts specialist said it has come to agreement with its suitor Schaeffler Group, which will buy a minority stake in the German automotive parts maker for 75 euros per share.
Daimler outperformed the general market, slipping 0.21 euro or 0.51 percent to 39.75 euro after a report in Manager magazine said the automaker plans to cut more jobs, mainly at the luxury-car maker's headquarters, and is discussing a partial sale and stock market listing of its truck unit.
Daimler, however, said it has no plans to cut more jobs and that it also will not take its truck unit public or sell parts of it.
Over on the MDAX, Arcandor shed 0.58 euro or 9.68 percent to 5.41 euros as the index's worst performer after the stock broke through what traders called a psychologically important resistance barrier at 6.00 euros per share.
Demag Cranes, meanwhile, added 1.05 euros or 3.10 percent to 34.88 euros.
TecDAX-listed Solarworld was the index's strongest performer, up 1.89 euros or 5.89 percent at 34.00 euros.
Nordex saw a 1.07 euro or 4.91 percent climb to 22.86 euros after the wind turbine specialist reported numbers for the first half of 2008, which traders said were largely solid.
At the other end, Conergy lost 0.48 euro or 5.01 percent to 9.10 euros. maria.sheahan@thomsonreuters.com mas/slm/mas/ejp COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
