MARKETS-STOCK/EUROPE CLOSE European stocks lose more than 500 bln euros in value after China rout

Record ID: 142767

  • Title: MARKETS-STOCK/EUROPE CLOSE European stocks lose more than 500 bln euros in value after China rout
  • Date: 24th August 2015
  • Summary: FRANKFURT, GERMANY (AUGUST 24, 2015) (REUTERS) TRADERS AND ELECTRONIC BOARD WITH DAX GRAPH ELECTRONIC BOARD WITH DAX GRAPH (SOUNDBITE) (German) TRADER FOR PRIVATE BAADER BANK, STEFAN SCHARFFETTER, SAYING: "The situation that we saw last week has again put pressure on the market today. We see that China is not overcoming its crisis and worries about a bigger economic dip are getting bigger. The commodity markets are breaking down, the euro is becoming more expensive against the dollar, nobody know whether there will be hike in interest rates in the US in September, and all that puts pressure on the market. Also the opening of the stock exchange in the U.S. was rather weak, so the DAX lost a bit more than six per cent at some point." VARIOUS OF TRADERS ON MONITORS ELECTRONIC BOARD SHOWING HIGH AND LOWS OF DAX (SOUNDBITE) (German) TRADER FOR PRIVATE BAADER BANK, STEFAN SCHARFFETTER, SAYING: "It is hard to predict (how it will go), the markets are rather nervous. We have seen fairly big turnovers today, and the DAX going down today, and we didn't have that in the last days and weeks. But that could be a sign for the end of the sale run, that we have hit the ground and that things will slowly move upwards over the next days." TRADER ELECTRONIC BOARD SHOWING CHANGES IN DAX VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING DAX GRAPH TRADING FLOOR
  • Embargoed: 8th September 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVA38MTXKA3DR0HOH2TOSA6LFLSG
  • Aspect Ratio: 16:9
  • Story Text: European stocks slumped on Monday (August 24) following a rout in Chinese markets, wiping hundreds of billions of euros off leading shares and sending one benchmark index to a seven-month low.
    Trading screens flashed red across the region as the stock markets in Frankfurt fell and Paris fell more than 5 percent, while Athens' bourse - already down sharply due to Greece's debt problems - slumped around 10 percent.
    The FTSEurofirst joined Frankfurt stocks and sank to its lowest level since January, having lost more than a trillion euros in market value since the start of the month as China's devaluation of the yuan stoked fears of global economic deflation. Chinese stocks plunged more than 8 percent on Monday, in their biggest one-day loss since the height of the global financial crisis in 2007, after Beijing held back expected policy support at the weekend following last week's 11 percent slide.
    "The situation that we saw last week has again put pressure on the market today. We see that China is not overcoming its crisis and worries about a bigger economic dip are getting bigger. The commodity markets are breaking down, the euro is becoming more expensive against the dollar, nobody know whether there will be hike in interest rates in the US in September, and all that puts pressure on the market. Also the opening of the stock exchange in the U.S. was rather weak, so the DAX lost a bit more than six per cent at some point," one trader at private Baader Bank, Stefan Scharffetter, said.
    Some investors and strategists said the sell-off may have been overdone, with others saying European stocks with strong business ties to China, which includes carmakers and luxury goods companies, might come under more selling pressure in the near term.
    "It is hard to predict (how it will go), the markets are rather nervous. We have seen fairly big turnovers today, and the DAX going down today, and we didn't have that in the last days and weeks. But that could be a sign for the end of the sale run, that we have hit the ground and that things will slowly move upwards over the next days," Scharffetter added.
    With China being one of the world's biggest users of metals and oil, mining stocks and the energy sector were also affected by the slump, as commodities fell to multi-year lows.
    ($1 = 0.8583 euros)
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