- Title: Weak euro boosts Germany's Dax
- Date: 4th October 2016
- Summary: FRANKFURT, GERMANY (OCTOBER 4, 2016) (REUTERS) EXTERIOR FRANKFURT STOCK EXCHANGE TRADING FLOOR TRADER ELECTRONIC BOARD SHOWING DAX GRAPH TRADERS AT MONITORS ELECTRONIC BOARD SHOWING SHARE INDEXES (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "At the moment, the markets are moved by the relative calm that has descended on Deutsche Bank. We suffered quite a bit from the banking crisis. And now we start into the new week slightly more unencumbered." TRADERS ELECTRONIC BOARD SHOWING DEUTSCHE BANK SHARES (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "Well, it is important for Deutsche Bank to allow calm to take over because it stirred up a lot of trouble. There was a Deutsche Bank bashing. And many investors probably took part in it to make gains. Deutsche Bank could eventually find a short-term solution with the U.S. justice ministry, that would help Deutsche Bank tremendously and restore calm in this matter to let Deutsche Bank do its job." TRADERS ON MONITORS ELECTRONIC BOARD SHOWING LOW OF DAX TRADER ELECTRONIC BOARD SHOWING HIGH OF DAX (SOUNDBITE) (German) CAPITAL MARKETS ANALYST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "Well, we have some risks - or we can even say Swords of Damocles hanging over - the global economic downturn, and Brexit is part of it. The Brexit has been decided, but it is not implemented. Allegedly, the first negotiations on Brexit should take place in March. And the exit can then be requested. That would finally bring about the negotiations phase which will open the door wide for speculations. And that is not good. It brings about lots of uncertainty. And the Brexit Sword of Damocles continues to hang over the global economy." TRADER ELECTRONIC BOARD SHOWING CHANGES IN DAX TRADER ELECTRONIC BOARD SHOWING DAX GRAPH TRADING FLOOR
- Embargoed: 19th October 2016 09:46
- Keywords: Dax Frankfurt stock exchange Deutsche Bank
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00152L9W99
- Aspect Ratio: 16:9
- Story Text: German shares advanced in early trading on Tuesday (October 4) with help from a weak euro, as Deutsche Bank further recovered after recent steep losses.
Deutsche Bank rose around 2 percent to a two-week high. Its shares had slumped to a record low on Friday (September 30) before bouncing back on expectations of a swift deal with U.S. authorities over a multi-billion dollar penalty.
"At the moment, the markets are moved by the relative calm that has descended on Deutsche Bank. We suffered quite a bit from the banking crisis. And now we start into the new week slightly more unencumbered," capital markets analyst at Oddo Seydler Bank Oliver Roth said.
HSBC said that despite Deutsche Bank's obvious operational shortcomings, fears over the bank's solvency were overdone.
However, HSBC cut its target price for the bank, forecasting challenging conditions for the banking environment and adding that Deutsche Bank might lose revenues due to the short-term lack of confidence.
The euro continued a low performance this week but was still no match for Britain's pound, which slumped to a three-decade low on Tuesday as concerns over Brexit were compounded by the renewed strength of the dollar on resurgent U.S. interest rate hike expectations.
Sterling was at its weakest since 1985, hit by a growing sense that the UK may be heading for a 'hard' Brexit where it severs links to the EU's single market in favour of total control over immigration.
Roth agreed that Brexit would inevitably bring much uncertainty to the global economy, referring to it as a "Sword of Damocles". - Copyright Holder: REUTERS
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