GERMANY: DAX falls sharply after U.S. jobs data

Record ID: 1519127

  • Title: GERMANY: DAX falls sharply after U.S. jobs data
  • Date: 3rd September 2011
  • Summary: FRANKFURT, GERMANY (SEPTEMBER 2, 2011) (REUTERS) EXTERIOR OF FRANKFURT STOCK EXCHANGE VARIOUS OF TRADERS BOARD SHOWING DAX GRAPH VARIOUS OF TRADERS VARIOUS OF BOARD SHOWING BANKING STOCKS TRADERS NEWS TICKER TRADER BOARD SHOWING INDEX VALUES TRADERS (SOUNDBITE) (German) TRADER FOR BAADER BANK AG, STEFAN SCHARFFETTER, SAYING: "The news which we are seeing at the moment is not very positive. The DAX is under a lot of pressure. We can see that legal action is to be taken against American banks because of the mortgage crisis of three years ago. It just doesn't look good at the moment. Other economic data also doesn't point towards share hikes at the moment." TRADERS NEWS TICKER (SOUNDBITE) (German) TRADER FOR BAADER BANK AG, STEFAN SCHARFFETTER, SAYING: "At a first glance, the U.S. unemployment figures seem to be within expectations. As expected the unemployment rate did not change. But if you look again you can see that outside of the agricultural sector, no new jobs were created and this pushed down the DAX severely. We lost more than 100 points in a very short period of time. It doesn't look good for the weekend." TRADERS BOARD SHOWING DAX VALUE TRADER GRAPH OF DAX TRADER DAX BOARD PEOPLE LOOKING AT TRADING FLOOR WIDE OF TRADING FLOOR
  • Embargoed: 18th September 2011 03:28
  • Keywords:
  • Location: Germany, Germany
  • Country: Germany
  • Topics: Economy
  • Reuters ID: LVA2JIIICKZ16DZNJ9BKTU609OR2
  • Aspect Ratio: 4:3
  • Story Text: Markets fell sharply on Friday (September 2) afternoon after data showed U.S. employment growth ground to a halt in August, adding to worries about the health of the economy.
    Non-farm payrolls generated no new jobs last month as sagging consumer confidence discouraged already skittish U.S. businesses from hiring and kept pressure on the U.S. Federal Reserve to provide more monetary stimulus to aid the economy.
    European stocks fell across the board, snapping a four-day rally that had seen a key index rise 5.9 percent.
    At 1357GMT Germany's DAX was down 3.82 percent at 5511 points.
    "At a first glance, the U.S. unemployment figures seem to be within expectations. As expected the the unemployment rate did not change. But if you look again you can see that outside of the agricultural sector, no new jobs were created and this pushed down the DAX severely. We lost more than 100 points in a very short period of time. It doesn't look good for the weekend," Stefan Scharffetter, a trader with Baader Bank AG told Reuters TV in Frankfurt.
    Bank shares were under pressure after the New York Times reported the Federal Housing Finance Agency is suing big lenders like Bank of America Corp, JPMorgan Chase & Co and Goldman Sachs Group Inc.
    The suit, involving mortgages sold during the housing bubble, accuses the banks of failing to perform due diligence and missing evidence that borrowers' incomes were falsified or inflated.
    Scharffetter said this news was putting added pressure on the DAX.
  • Copyright Holder: REUTERS
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