European shares stable after steep sell-off; Frankfurt analyst blames Trump for recession fears
Record ID:
1427201
European shares stable after steep sell-off; Frankfurt analyst blames Trump for recession fears
- Title: European shares stable after steep sell-off; Frankfurt analyst blames Trump for recession fears
- Date: 15th August 2019
- Summary: FRANKFURT, GERMANY (AUGUST 15, 2019) (REUTERS) ELECTRONIC BOARD / SIGN READING (German): "FRANKFURT STOCK EXCHANGE." DAX GRAPH TRADER BANK SHARES ON BOARD TRADER ON PHONE NEWS SCROLL ON TV READING (German) "DAX STARTS WITH SMALL INCREASE." VARIOUS OF TRADERS DAX BOARD (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "The trade policy of the United States, and thereby of President Donald Trump, has its effect now, but not the one he had hoped for. Rather, there is a negative effect and based on numbers, the economy is clearly tumbling. There is a significant fear of a recession, not just for the world economy as a whole but also in the United States. This shows that a trade war is not beneficial to anyone. Instead, it harms everyone." TRADERS BANK SHARES ON ELECTRONIC BOARD (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "The market mood worldwide is rock bottom. There are various reasons and the one right now is a so-called inverse interest rate curve, which means that short-term interest rates in the United States are higher than long-term ones. That's unusual and a clear sign that investors fear a recession, also in the United States." TRADERS (SOUNDBITE) (German) HEAD OF SPECIALIST FLOOR EQUITIES AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "Entire books could be written about Donald Trump's trade policy and its effect on the world economy. The bottom line is that for decades, there was a cycle among industrial powers how goods are being produced, sold and consumed. Donald Trump with his policy clearly interrupted this cycle and the effect is a possible recession. That's no surprise, but even with an imminent agreement between the Americans and the Chinese, it can't be changed quickly." TRADING FLOOR
- Embargoed: 29th August 2019 09:59
- Keywords: DAX shares stocks Frankfurt exchange recession fears tariffs trade
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA001ASBUOWD
- Aspect Ratio: 16:9
- Story Text: European shares stabilised on Thursday (August 15), after a brutal sell-off was fuelled by global fears of recession, but investors were hoping central banks would step in to ease monetary policy and soothe jittery markets.
The pan-European STOXX 600 index was flat at 0828 GMT after dropping to near six-month lows hit in the previous session, with thin trading volumes as markets in Italy, Austria and Greece were shut for a public holiday.
Weighing on the benchmark index was a drop among interest rate-sensitive banks as Eurozone government bond yields went further into negative territory.
In Frankfurt, analyst Oliver Roth of Oddo Seydler bank blamed recession fears on U.S. President Donald Trump's trade policy, saying they showed a trade war was not beneficial to anyone.
At 11:10 a.m. (0910 GMT), Germany's DAX stood at 11,489 points, down 3 points or 0.03%.
(Production: Hakan Erdem, Michele Sani) - Copyright Holder: REUTERS
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