DAX plunges below 4,000 points

DAX plunges below 4,000 points
Photo: DPA
Germany’s leading stock index the DAX on Monday plunged to its lowest level in over four years as worries about the economy dragged it below 4,000 points.

With concerns about US stock markets weighing heavily on traders in Frankfurt, the index of the country’s top 30 listed companies fell to levels not seen since November 2004.

“The negative US bourses were the cause,” said one trader. “That led to sales of on the DAX too and pushed us to a new low.”

The DAX closed down nearly 2 percent at 3,936 points.

The spiralling global economy caused the Dow Jones in New York to drop to the lowest levels since October 2002 last week. Bank shares were particularly hard hit in Frankfurt, with one trader pointing to speculation of a government bailout of US giant Citigroup.

Deutsche Bank, Germany’s largest private bank, was off more than 5 percent at €17.41 on Monday.