- Title: GERMANY: DAX tumbles as as Europe's debt crisis continues
- Date: 20th September 2011
- Summary: FRANKFURT, BERLIN (SEPTEMBER 19) (REUTERS) VARIOUS OF EXTERIOR OF FRANKURT STOCK EXCHANGE VARIOUS OF TRADERS AT WORK WIDE OF DAX BOARD VARIOUS OF TRADERS AT WORK CLOSE OF DAX BOARD CLOSE OF TRADERS WIDE OF DAX BOARD (SOUNDBITE) (English) TRADER AT CLOSE BROTHERS SEYDLER BANK, OLIVER ROTH, SAYING "We are expecting from this week after the 'boomweek' last week, which was technically the recovery of the markets, that this week we will face the reality again. And the reality is economical slowdown, is the debt crisis and of of course the Greek misery. And what we are expecting for this week, is a lot of pressure for the markets." CLOSE OF DAX BOARD WIDE OF DAX BOARD WIDE OF TRADING FLOOR
- Embargoed: 5th October 2011 13:00
- Location: Germany, Germany
- Country: Germany
- Topics: Economy
- Reuters ID: LVA85NY3SE5BLMUAFPR6K1YWUDE5
- Aspect Ratio:
- Story Text: World stocks and the euro fell sharply on Monday (September 19), hit by the lack of progress from finance ministers in solving Europe's debt crisis at weekend meetings and avoiding a default by Greece. The DAX fell by 2,3 percent to 5448 points as the markets opened.
After a rare four-day rally in world stocks last week, the cancellation of a visit by Greek Prime Minister George Papandreou to the United States to chair an emergency cabinet meeting at home, and a regional election defeat for German Chancellor Angela Merkel, added to a sense of worsening crisis.
At meetings ending on Saturday, EU finance ministers broke no new ground in dealing with the crisis and made no decision on whether to give more firepower to the 440-billion euro bailout fund, suggested by U.S. Treasury Secretary Timothy Geithner.
"We are expecting from this week after the 'boomweek' last week, which was technically the recovery of the markets, that this week we will face the reality again. And the reality is economical slowdown, is the debt crisis and of of course the Greek misery. And what we are expecting for this week, is a lot of pressure for the markets," Oliver Roth, trader at Close Brothers Seydler Bank, told Reuters TV in Frankfurt.
With the gloom so widespread, investors are drawing little support from expectations the Federal Reserve would introduce new measures to stimulate the U.S. economy later this week.
If they buy euro-denominated bonds -- as suggested in preliminary talks -- this may help turn around sentiment, after the European Central Bank's 70 billion euro operation failed to stop the crisis from spreading to Spain and Italy.
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