GERMANY: German DAX starts 0.4 percent lower into new week as U.S. shutdown drags on

Record ID: 864077

  • Title: GERMANY: German DAX starts 0.4 percent lower into new week as U.S. shutdown drags on
  • Date: 14th October 2013
  • Summary: FRANKFURT, GERMANY (OCTOBER 14, 2013) (REUTERS) WIDE OF FLOOR AT FRANKFURT STOCK EXCHANGE DAX BOARD SHOWING A LOSS OF 31.07 POINTS OR 0.26 PERCENT TRADERS DAX BOARD HIGH SHOT OF TRADERS WIDE OF DAX BOARD DAX CURVE TRADER SEEN BETWEEN MONITORS BANK SHARES TRADER DAX CURVE (SOUNDBITE) (German) ICF PENSIONS EXPERT AND TRADER, ARTHUR BRUNNER, SAYING: "The DAX opened with slight losses of about half a percentage point. Markets are lower across Europe and the reason is the Chinese export figures which are down 0.3 percent. Also, inflation in China surprisingly rose to 3.1 percent. Another reason is the U.S. shutdown which is still not solved." BANK SHARES (SOUNDBITE) (German) ICF PENSIONS EXPERT AND TRADER, ARTHUR BRUNNER, SAYING: "The reaction from markets to the U.S. strategy is a wait and see policy. Last week, markets were already counting on a solution. Today, the issue is seen with more sobriety. But there is a feeling that an agreement can be reached, otherwise the markets would be much weaker." HIGH SHOT OF TRADERS (SOUNDBITE) (German) ICF PENSIONS EXPERT AND TRADER, ARTHUR BRUNNER, SAYING: "Today, it's mainly about Ireland, Portugal and Spain whose aid packages expire in 2014. For Ireland, it's clear that they will continue to exist in the market. With Spain, recent developments show that the country can refinance itself without problems with money from the capital markets. The problem is Portugal: there too, the euro rescue fund will expire next year and it looks like an extension for Portugal is probable." WIDE OF DAX BOARD HIGH SHOT OF FLOOR
  • Embargoed: 29th October 2013 12:00
  • Keywords:
  • Location: Germany
  • City:
  • Country: Germany
  • Topics: Economy,Politics
  • Reuters ID: LVAERJVEI75IXZ3W90Y0Y2N0X87A
  • Aspect Ratio:
  • Story Text: The German DAX index on Monday (October 14) opened with losses of 0.4 percent into the new week as one Frankfurt trader said markets viewed the ongoing U.S. government shutdown with a "wait and see policy."
    Trader Arthur Brunner of ICF Pensions said that "last week, markets were already counting on a solution. Today, the issue is seen with more sobriety."
    "But there is a feeling that an agreement can be reached, otherwise the markets would be much weaker," Brauner said.
    On Friday, analysts warned that U.S. economic growth could suffer a big hit in the fourth quarter if the partial shutdown of the U.S. government lasts more than a month.
    Economists estimate that the shutdown, which started on Oct. 1, was chipping away roughly 0.1 percentage point each week from fourth-quarter gross domestic product.
    Analysts said the impact on growth could be even worse if Congress failed to extend the government's borrowing authority past next Thursday's limit.
    Almost 90 minutes into trading, the DAX was at 8,703 points, down 21 points or 0.25 percent.
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