Frankfurt - German stocks recovered some of their losses in early trading in Frankfurt on Tuesday.

The blue chip DAX climbed 1.63 per cent to 5,475 after losing 7.07 per cent on Monday.

Among the winners was troubled property lender Hypo Real Estate (HRE), which is subject of a 50-billion-euro (68-billion-dollar) bail-out after running into liquidity problems.

HRE saw its shares rise 14.3 per cent to 5.35 euros. On Monday, the bank group saw its share price slashed by 37.42 per cent.

Deutsche Bank, Germany's biggest, was down 3.3 per cent at 46.26 euros, showing that financial institutes were still not out of the woods, analysts said.

Another early loser was software giant SAP, whose share price dropped 1.1 per cent to 28.54 euros after the company issued a profit warning on Monday.

"The mood remains cautious," one trader said. (dpa)