GERMANY: Germany's DAX closes at 5917 points after recovering from a steep slide in morning trading
Record ID:
862650
GERMANY: Germany's DAX closes at 5917 points after recovering from a steep slide in morning trading
- Title: GERMANY: Germany's DAX closes at 5917 points after recovering from a steep slide in morning trading
- Date: 10th August 2011
- Summary: FRANKFURT, GERMANY (AUGUST 9, 2011) (REUTERS) WIDE OF TRADING FLOOR VARIOUS OF TRADERS AT WORK WIDE OF TRADING FLOOR CLOSE OF TRADING BOARD (SOUNDBITE) (English) TRADER AT BAADER BANK, ROBERT HALVER, SAYING: "It was a crazy day, definitely. I have never seen that before and I hope it will never come back again. We began with a loss of 7 percent and ended nearly in the plus area. What is right now very necessary that (Federal Reserve Chairman) Ben Bernanke will do whatever he can do to avoid a double dip. That's why he will keep on holding the interest rates low and have a wonderful liquidity environment." VARIOUS OF TRADERS AT WORK WIDE OF TRADING FLOOR
- Embargoed: 25th August 2011 13:00
- Keywords:
- Location: Germany, Germany
- City:
- Country: Germany
- Topics: Economy
- Reuters ID: LVAAKL9NCPA8DI0TK2NZKCECWZXG
- Aspect Ratio:
- Story Text: Germany's DAX recovered from its steep slide on Tuesday (August 9) to close at 5917 points as world stocks rebounded from a 10-day rout as investors looked to the U.S. Federal Reserve to calm markets, though rallies in gold and the Swiss franc showed some were clinging to safe assets.
"It was a crazy day, definitely. I have never seen that before and I hope it will never come back again. We began with a loss of 7 percent and ended nearly in the plus area. What is right now very necessary that Ben Bernanke will do whatever he can do to avoid a double dip. That's why he will keep on holding the interest rates low and have a wonderful liquidity environment," trader at Baader Bank, Robert Halver, told Reuters TV at the Frankfurt stock exchange.
The Federal Reserve has rescued world markets in the past, which may explain why some investors were pulling back from the recent gloom. But such expectation also leave markets open to disappointment should the statement after the Fed's meeting on Tuesday be deemed inadequate.
The Fed may have limited options because the current crisis is not liquidity-driven, as it was in 2008. The meltdown across assets instead reflects worries about faltering economic growth and paralysis at the highest levels of government --on both sides of the Atlantic -- in dealing with economic problems.
In a sign of hesitation that the equity-market rebound could be cut short, safe-haven bets were still favoured as gold hit another record and investors pushed into the Swiss franc.
Fears of a new global economic downturn, reinforced by a downgrade of the United States' credit rating last Friday and the debt crisis in the euro zone, had sent world shares down as much as 20 percent from May's peak. - Copyright Holder: REUTERS
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