GERMANY: GERMANY'S DAX INDEX HAS PLUNGED TO A FRESH FIVE-YEAR LOW

Record ID: 648315

  • Title: GERMANY: GERMANY'S DAX INDEX HAS PLUNGED TO A FRESH FIVE-YEAR LOW
  • Date: 30th September 2002
  • Summary: (EU) FRANKFURT, GERMANY (SEPTEMBER 30, 2002) (REUTERS - ACCESS ALL) 1. SLV OF FLOOR AND DAX BOARD AT 4:15 P.M. (1415 GMT) 0.05 2. SV BROKER IN FRONT OF DAX BOARD 0.09 3. CLOSE-UP OF LOW AT 2721.74 POINTS 0.13 4. CU BROKERS TALKING TO EACH OTHER 0.18 5. LAS SLUMP OF DAX CURVE 0.26 6. MCU BROKER TALKING 0.31 7. LAS DAX BOARD 0.36 8. MCU BROKERS WORKING ON COMPUTERS (2 SHOTS) 0.47 9. MCU BROKERS TALKING ON PHONE (2 SHOTS) 0.57 10. HIGH SHOT OF FLOOR 1.03 11. CU SLUMP OF DAX CURVE 1.08 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 15th October 2002 13:00
  • Keywords:
  • Location: FRANKFURT, GERMANY
  • Country: Germany
  • Reuters ID: LVA4A7ZEWOPVL6E9X0ARZSZERQ3E
  • Story Text: Germany's DAX index has plunged to a fresh five-year
    low as a weak start on Wall Street added to a tech-led
    downswing on fears about the slow pace of world economic
    growth and the risk of war with Iraq.



    The DAX fell 6.3 percent to 2,736 points by 1417 GMT
    after posting an intraday low of 2,721 points -- its lowest
    level since November 7, 1996 -- as index volatility hit a
    record high
    above levels seen after the September 11 attacks.

    The mood darkened after the September purchasing managers
    index for Chicago, one of the United States key manufacturing
    regions, came in at 48.1, well below economists expectations
    of
    53.1.

    Siemens, DaimlerChrysler and Deutsche Telekom all fell by
    more than eight percent, exerting the most drag on the
    blue-chip barometer.

    Traders said the weak U.S. economic indicator rang alarm
    bells for investors already worried about the sluggish
    economy, the risk of war with Iraq and possible nasty
    surprises from next
    quarters corporate results.

    Commerzbank plunged 9.7 percent to 6.6 euros after its
    chief executive told Reuters that he was unable to make a
    reliable forecast for 2002 earnings and said the bank would
    have to set
    aside an additional 200 million euros for bad loans.

    The DAXs fall wiped 22 billion euros from the market
    capitalisation of the DAX, which has plunged 25 percent in
    September, its biggest monthly crash in a decade.

    Since the start of the month, the DAX has lost more than
    131 billion euros in market value, roughly equal to the gross
    domestic product of Norway.


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