German shares plunge over 300 points over fear of economic recession

Antaletriangle · 10-15-2008, 05:38 PM

http://news.xinhuanet.com/english/20...t_10200875.htm

www.chinaview.cn 2008-10-16 00:46:00
BERLIN, Oct. 15 (Xinhua) -- German shares slumped by more than 300 points on Wednesday over the fear of economic recession in the biggest economy of Europe.

The benchmark DAX, index of 30 big companies at the Frankfurt Stock Exchange, started to fall at the opening trading in the morning, and it plunged severely in the afternoon.

When the stock exchange closed its Wednesday's trading at 17:45p.m. local time (1645 GMT), the DAX slumped 337.56 points, or 6.49percent, to stand at 4,861.63, breaking two benchmarks of 5,000 and 4,900 points.

The index of medium-sized firms, MDAX, also plunged 394.41 points, or 6.52 percent, to hit 5,657.63, also breaking the benchmark of 6,000 points.

This is the biggest slump after the German shares rebounded strongly on Monday after German Chancellor Angela Merkel revealed her government's financial rescue plan worth of nearly 500 billion euros (about 685 billion U.S. dollars).

Observers believed that the investors' confidence was dampened over the fear of global economic recession following the financial crisis triggered by the United States.

On Tuesday, Germany's leading economic research institutes warned that the nation was on the brink of a recession with the think tanks slashing their 2009 economic growth forecasts for the country from 1.4 percent to just 0.2 percent.

At the same time, a key survey showed that the investor confidence in the country plunged this month as a wave of panic selling engulfed global financial markets.

Earlier on Wednesday, German Chancellor Angela Merkel also warned of "tough times" ahead for the economic engine of the European Union (EU).

"Germany is strong," she told the German parliament. "However, Germany will go through a difficult period."

"We have to expect that economic growth in Germany will slow," the chancellor said, but she went on to say that it was unlikely that the downturn would result in a sustained economic slump.

Editor: Mu Xuequan

10-15-2008, 05:38 PM	#1
Antaletriangle Avalon Senior Member Join Date: Sep 2008 Location: U.K. Posts: 3,380	German shares plunge over 300 points over fear of economic recession http://news.xinhuanet.com/english/20...t_10200875.htm www.chinaview.cn 2008-10-16 00:46:00 BERLIN, Oct. 15 (Xinhua) -- German shares slumped by more than 300 points on Wednesday over the fear of economic recession in the biggest economy of Europe. The benchmark DAX, index of 30 big companies at the Frankfurt Stock Exchange, started to fall at the opening trading in the morning, and it plunged severely in the afternoon. When the stock exchange closed its Wednesday's trading at 17:45p.m. local time (1645 GMT), the DAX slumped 337.56 points, or 6.49percent, to stand at 4,861.63, breaking two benchmarks of 5,000 and 4,900 points. The index of medium-sized firms, MDAX, also plunged 394.41 points, or 6.52 percent, to hit 5,657.63, also breaking the benchmark of 6,000 points. This is the biggest slump after the German shares rebounded strongly on Monday after German Chancellor Angela Merkel revealed her government's financial rescue plan worth of nearly 500 billion euros (about 685 billion U.S. dollars). Observers believed that the investors' confidence was dampened over the fear of global economic recession following the financial crisis triggered by the United States. On Tuesday, Germany's leading economic research institutes warned that the nation was on the brink of a recession with the think tanks slashing their 2009 economic growth forecasts for the country from 1.4 percent to just 0.2 percent. At the same time, a key survey showed that the investor confidence in the country plunged this month as a wave of panic selling engulfed global financial markets. Earlier on Wednesday, German Chancellor Angela Merkel also warned of "tough times" ahead for the economic engine of the European Union (EU). "Germany is strong," she told the German parliament. "However, Germany will go through a difficult period." "We have to expect that economic growth in Germany will slow," the chancellor said, but she went on to say that it was unlikely that the downturn would result in a sustained economic slump. Editor: Mu Xuequan