* FTSEurofirst 300 falls 2.4 pct, erases 2009 gains
* Banks, electricity stocks top losers
* Commodity stocks track weaker crude, metals prices
By Atul Prakash
LONDON, Jan 13 (Reuters) - European shares fell for a fifth
straight session on Tuesday, led lower by banks, electricity and
commodity stocks, as worries about a tough earnings season grew
after aluminium giant Alcoa <AA.N> posted a fourth-quarter loss.
At 1005 GMT, the index of top European shares was down 2.4
percent at 832.79 points after hitting a low of 831.96 points --
a level below last year's closing point. The benchmark lost 45
percent in 2008.
The banking sector took the most points off the index, with
Barclays <BARC.L> falling 8.3 percent, HBOS <HBOS.L> down 4.2
percent, Royal Bank of Scotland <RBS.L> declining 5.3 percent
and UBS <UBSN.VX> slipping 6 percent
Electricity companies were also hurt. EDF <EDF.PA>, Enel
<ENEI.MI>, International Power <IPR.L> and Renewable Energy
<REC.OL> were down 1.7-7 percent.
"We have to get through a very tough earnings season," said
Jonathan Lawlor, head of European research at Fox-Pitt, Kelton,
adding that the banking sector was expected to face more
headwinds in the first half of this year.
"We believe regulators and central banks will do everything
to avoid a depression and may well in due course move to
quantitative easing," he added.
Kicking off the earnings season, U.S. miner Alcoa posted a
wider-than-expected loss late on Monday, as the global economic
slump dampened demand for its aluminium products.
In Tokyo, Sony Corp <6758.T> shares tumbled after a source
with knowledge of the matter said the Japanese electronics and
entertainment conglomerate will likely suffer an operating loss
of about $1.1 billion due to sluggish sales and a stronger yen.
Concerns about huge credit losses at Citigroup <C.N> dragged
its stock 17 percent lower in the previous session. The Wall
Street Journal said Citigroup could post more than $10 billion
in fourth-quarter operating losses.
Across Europe, the FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> fell 1.9-2.4 percent.
COMMODITY SHARES DROP
Oils shares tracked crude prices that fell 2.7 percent. BP
<BP.L>, Royal Dutch Shell <RDSb.L>, gas producer BG Group <BG.L>
and Tullow Oil <TLW.L> lost between 0.4 and 7.4 percent.
Miners also retreated with a sharp decline in metals prices.
BHP Billiton <BLT.L>, Anglo American <AAL.L>, Vedanta Resources
<VED.L>, Xstrata <XTA.L>, Antofagasta <ANTO.L> and Rio Tinto
<RIO.L> fell between 3.6 and 8.7 percent.
France's largest carmaker, PSA Peugeot Citroen <PEUP.PA>,
fell nearly 4 percent after it reported an 8.7 percent fall in
full-year vehicle sales as the credit crunch and worsening
economic outlook battered global auto markets.
A trio of surveys showed that Britain's economy went into
steep decline at the end of last year when consumers tightened
their belts, businesses slashed jobs and the housing market
ground to a virtual standstill. []
Britain's biggest retailer Tesco Plc <TSCO.L> also felt the
impact of the economic downturn as it reported the smallest rise
in Christmas sales at UK stores open at least a year since the
early 1990s.
Deutsche Bank <DBKGn.DE> was trying to renegotiate terms of a
deal to acquire Deutsche Postbank <DPBGn.DE> due to a sharp
decline in the German retail bank's share price, a German
newspaper reported.
Deutsche Bank fell 0.8 percent, while Deutsche Postbank was
up 1.8 percent.
(Editing by Simon Jessop)
