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DAX surges higher on bank rescue plan

DPA/The Local
DPA/The Local - [email protected]
DAX surges higher on bank rescue plan
Photo:DPA

Germany’s leading stock index the DAX surged ahead on Monday, as bank shares were buoyed by the government’s plans to set up a massive rescue package for the financial sector.

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The index of Germany’s top 30 listed companies jumped 7.3 percent to 5,791 points in midday trade, as details became known of the government’s intention to inject €80 billion into troubled banks and offer €400 billion in guarantees for interbank loans.

Hammered in recent weeks, bank shares skyrocketed on the news on Monday. Troubled Hypo Real Estate soared 38.74 percent higher to €5.73, Commerzbank rose 16.13 percent to €11.27, and Deutsche Bank climbed 9.16 percent to €34.09.

But many German traders still remained skittish after the horrendous losses suffered last week.

“We’ll have to see if this recovery is sustainable. It’s without a doubt built upon extremely thin ice,” said a trader in Frankfurt.

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