- Title: MARKETS-STOCKS/EUROPE Germany's DAX slips as China stocks plunge
- Date: 27th July 2015
- Summary: FRANKFURT, GERMANY (JULY 27, 2015) (REUTERS) WIDE OF FLOOR AT FRANKFURT STOCK EXCHANGE DOWNWARD POINTING DAX CURVE TRADER BOARD SHOWING DAX LOSS OF 167.77 POINTS OR 1.48 PERCENT ROBERT HALVER, CAPITAL MARKETS ANALYST AT BAADER BANK, IN DISCUSSION TRADER VARIOUS OF DAX BOARD VARIOUS OF STOCK EXCHANGE FLOOR (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT BAADER BANK, ROBERT
- Embargoed: 11th August 2015 13:00
- Keywords:
- Location: Germany
- Country: Germany
- Topics: General
- Reuters ID: LVA2QOB6V56968VWI1TI362QTRYY
- Aspect Ratio: 16:9
- Story Text: European equities started the week on a downbeat note on Monday (July 27), heading for their fifth straight daily fall, with worries over China's growth prospects overshadowing some forecast-beating corporate results.
Although a slightly better-than-expected July reading from the German IFO business climate index helped ease some of the sell-off, market tremors rippled through the region after Chinese stocks suffered their biggest one-day loss in eight years and broader Asian markets fell more than 1 percent - with some traders saying if China were to get weak, problems in Greece would be a picnic in comparison.
"China is creating problems. China has suffered dramatic losses at the stock exchange despite the measures by the Beijing government to ban the sale of shares. It dropped massively - and China is hugely important for the world economy. If things continue like this the central bank in China will buy own shares of the companies in the country. China can not get weak because otherwise, the entire world economy will have a problem and Greece will look like a children's birthday party in comparison," capital markets analyst Robert Halver said in Germany's financial capiltal, Frankfurt.
The FTSEurofirst 300 index was down 1.3 percent at 0807 GMT, with benchmark indexes in Paris and Frankfurt broadly in line.
Speaking about Greece, Halver expressed doubt that there would be a "final result" to wrap up bailout talks with the lenders by Aug. 20.
"The different camps continue to be very irreconcilable. The Tsipras government is not a market-based government, it's a government which is rather committed to the public economy."
Halver also commented on a report in Germany's mass circulation daily "Bild" on Monday which wrote that former Greek energy minister Panagiotis Llafazanis was at the centre of an alleged coup in mid-July, citing "sources."
The report said that former finance minister Yanis Varoufakis was informed about the plans made by "at least five members of the Syriza central committee."
Frankfurt trader Robert Halver responded by saying "former finance minister Varoufakis is doing everything so that his fees as a speaker are as high as possible. That forces him to make up stories: a coup and the overnight introduction of the drachma was planned, then the arrest of the central bank governor."
"There is nothing to it," said Halver. - Copyright Holder: REUTERS
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