- Title: GERMANY: Traders surprised as DAX inches higher
- Date: 18th July 2012
- Summary: FRANKFURT, GERMANY (JULY 18, 2012) (REUTERS) BULL AND BEAR STATUES OUTSIDE GERMAN STOCK EXCHANGE BEAR STATUE EXTERIOR OF STOCK EXCHANGE TRADING FLOOR VARIOUS OF TRADERS BOARD SHOWING DAX GRAPH (SOUNDBITE) (German) FIDEL HELMER FROM HAUCK & AUFHAEUSER, SAYING: "Surprisingly the DAX started a bit better today. We hope it will stay this way and that the DAX can finally reach the 6600 mark but there is just too little news today. Perhaps the next speech by Ben Bernanke this afternoon will help the DAX get over this hurdle." BOARD SHOWING DAX UP 0.40 PERCENT AT 0932 LOCAL (0732GMT) (SOUNDBITE) (German) FIDEL HELMER FROM HAUCK & AUFHAEUSER, SAYING: "It is very important to us that trust is restored in the banks and such news, like that from HSBC, that it has been involved in serious money laundering, has come at the completely wrong time. We really don't need news like this. I think that different measures of control just simply failed here." VARIOUS OF TRADERS BOARD SHOWING DAX GRAPH TRADING FLOOR
- Embargoed: 2nd August 2012 13:00
- Keywords:
- Location: Germany
- City:
- Country: Germany
- Topics: Economy
- Reuters ID: LVAEDNT2OO6EPZ7DXMEJ3IP6H216
- Aspect Ratio:
- Story Text: Germany's DAX index opened up on Wednesday (July 18), despite investor disappointment about the lack of any hint at imminent monetary stimulus by the Federal Reserve's chairman Ben Bernanke during a Congressional testimony on Tuesday (July 17).
"Surprisingly the DAX started a bit better today. We hope it will stay this way and that the DAX can finally reach the 6600 mark but there is just too little news today. Perhaps the next speech by Ben Bernanke this afternoon will help the DAX get over this hurdle," Fidel Helmer, from Hauck&Aufhaueser told Reuters TV in Frankfurt.
At 0828GMT the DAX was up 0.4 percent at 6601 points.
In his testimony to the Senate Banking Committee, Bernanke said the economic recovery was being held back by anxiety over Europe's debt crisis and the path of U.S. fiscal policy, and he expressed unease over a stagnant jobs market.
Analysts said the Bernanke's comments on the economy, especially on the jobs market, suggested the central bank could opt for further monetary stimulus.
Bernanke will address the House Financial Services Committee later on Wednesday, following his testimony to the U.S. Senate Banking Committee on Tuesday.
Traders also say they were worried about news regarding the British bank HSBC Holdings Plc.
On Monday (July 16) the U.S. Senate Permanent Subcommittee on Investigations released a 400-plus-page report detailing how the British bank acted as a financier to clients routing funds from the world's most dangerous corners, including Mexico, Iran and Syria.
While money laundering problems at HSBC have been flagged by regulators for nearly a decade, the criticism comes at a sensitive time for the banking industry.
"It is very important to us that trust is restored in the banks and such news, like that from HSBC, that it has been involved in serious money laundering, has come at the completely wrong time. We really don't need news like this. I think that different measures of control just simply failed here," Helmer said.
Banks are facing accusations of greed tied to allegations that international banks for years tried to rig the global lending benchmark rate Libor and other scandals, including a trading bet gone awry at JPMorgan Chase & Co. - Copyright Holder: REUTERS
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