DAX plunges under 5,000 points

DAX plunges under 5,000 points
Photo: DPA
Germany’s leading stock index the DAX plunged below the psychologically important 5,000 mark in early trading on Wednesday, as investor flight from equities continued.

The index of Germany’s top 30 listed companies fell around six percent in the opening minutes of trade to 4,999 points. Traders in Frankfurt said the horrific losses suffered earlier in Asia were pressuring things lower and the DAX then tanked 8.5 percent to 4,880 – a level not seen since 2005.

“There are real fears that the financial crisis will affect the real economy causing a recession,” said one trader.

Japan’s Nikkei index dropped a massive 9.4 percent earlier on Wednesday to hit its lowest point since 1987.