- Title: GERMANY/UK: MARKETS JUMP AT NEWS THAT U.S.-LED ARE FORCES READY TO ATTACK IRAQ.
- Date: 19th March 2003
- Summary: (U4) FRANKFURT, GERMANY (MARCH 19, 2003) (REUTERS - ACCESS ALL) 1. GV: EXTERIOR BOURSE 0.04 2. GV/PAN: WIDE VIEW OF FLOOR AND PAN TO BOARD 0.14 3. GV/TILT UP: TRADER AND TILT UP TO GRAPH 0.28 4. MCU: (SOUNDBITE) (German) FIDEL HELMER, BANK MERCK & AUFHAEUSER, SAYING: "The stock exchange has been reacting since last Thursday with daily 4-5 per cent gains in the DAX. The bourse knows now there is an ultimatum and Mister Hussein will either go into exile or there will be a war. And we all hope if there is a war, it will be very short. And that was what caused the positive effect because the topic Iraq has always been there and influenced the investors." 1.06 5. CU: CHART OF DAX INDEX SHOWING SPIKE STARTING AT 11AM ON NEWS OF U.S.-LED FORCES MOVING INTO THE DEMILITARISED ZONE ON IRAQ-KUWAIT BOARDER 1.14 (U4) LONDON, UNITED KINGDOM (MARCH 19, 2003) (REUTERS - ACCESS ALL) 6. MCU: (SOUNDBITE) (English) HILLARY COOK, BARCLAYS PRIVATE CLIENTS, SAYING: "The markets are just awash with rumours at the moment. It's quite difficult to concentrate on fundamental company news when everybody is focused on the war. This morning, initially - a bit of profit-taking, but then - stories that the Americans are in Iraq. And off the market goes, which does seem remarkable given that only a week ago everyone was so concerned about war and the markets were down so many hundred points below where they are at the moment. So, very difficult to rationalise it. But this on the back of quite heavy trading, and we do seem to see people are prepared to buy, even after a strong rise." 1.47 7. CU: CHART OF DAX INDEX SHOWING SPIKE STARTING AT 11AM ON NEWS OF U.S.-LED FORCES MOVING INTO THE DEMILITARISED ZONE ON IRAQ-KUWAIT BOARDER 1.56 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 3rd April 2003 13:00
- Keywords:
- Location: FRANKFURT, GERMANY / LONDON, UNITED KINGDOM
- City:
- Country: United Kingdom
- Reuters ID: LVA6UZZVGOVI14MENJMDFYX88UOG
- Story Text: European shares have clocked up sharp gains after
Kuwaiti sources told Reuters that U.S.-led forces had moved
into the demilitarised zone that straddles the Iraq-Kuwait
border.
News that United States (U.S.)-led forces had moved
into the demilitarised zone set stock markets jumping and bond
prices sliding on Wednesday (March 19).
Hinting at what may be in store when war begins, some
European bourses leapt more than two percent.
Many investors had been on the sidelines of markets,
waiting for war to begin following days in which the slow
lifting of uncertainty about war had boosted stocks.
"The stock exchange has been reacting since last Thursday
with daily 4-5 per cent gains in the DAX. The bourse knows now
there is an ultimatum and Mister Hussein will either go into
exile or there will be a war. And we all hope if there is a
war, it will be very short. And that was what caused the
positive effect because the topic Iraq has always been there
and influenced the investors," said Fidel Helmer, from Bank
Merck & Aufhaeuser.
In Frankfurt the DAX was up two percent at 2,638 points,
while the French CAC-40 rose 2.3 percent to 2,860 points.
At 1155 GMT the benchmark FTSE 100 in London was up 33
points, or 0.9 percent, at 3,780.7, after touching a high of
3,798.2.
"The markets are just awash with rumours at the moment.
It's quite difficult to concentrate on fundamental company
news when everybody is focused on the war. This morning,
initially - a bit of profit-taking, but then - stories that
the Americans are in Iraq. And off the market goes, which does
seem remarkable given that only a week ago everyone was so
concerned about war and the markets were down so many hundred
points below where they are at the moment. So, very difficult
to rationalise it. But this on the back of quite heavy
trading, and we do seem to see people are prepared to buy,
even after a strong rise," said Hillary Cook from Barclays
Private Clients.
Iraqi President Saddam Hussein has defied Washington's
demands that he flee his country to spare it from a U.S.-led
invasion.
Although there is a widespread view that war will be
short, investors remain wary of a series of risks -- including
a bloody siege of Baghdad, torched oil fields, an Iraqi attack
on Israel or terrorist attacks in the United States or its
ally Britain.
Washington has given President Saddam Hussein an ultimatum
to leave Iraq by 0115 GMT on Thursday (March 20) or face war.
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