Germany's news in English

Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

DAX tanks as investors fear global rout

Share this article

DAX tanks as investors fear global rout
Photo: DPA
17:19 CEST+02:00
Germany's DAX stock index hit its lowest level in two years on Monday amid growing investor fears of a renewed global recession.

The index of Germany's 30 leading blue-chip companies at one point plunged to 5212 points, down over five percent on the day and off a massive 30 percent from the year's high notched in May.

“The avalanche has started,” said one dejected trader according to the website of news magazine Der Spiegel. “Resignation and pessimism are colouring the mood.”

Among the biggest losers in Frankfurt was Deutsche Bank, which dropped nine percent at one point on news that US courts and UK regulators were looking into its subprime dealings that helped spark the global financial crisis in 2008.

The tumultuous day follows several weeks of extreme market volatility in which the Frankfurt Stock Market and counterparts in Europe and the United States have fluctuated wildly. But both the weak American economy and Europe's ongoing sovereign debt crisis continue to spook investors.

“It's an organized selloff,” explained one German trader.

DPA/The Local/mry

Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

How to work 9-5 and travel the rest of the time

A full-time job shouldn't stop you from satisfying your wanderlust. The Local spoke to Travel After 5 blogger Alline Waldhelm to find out her tips and tricks for travellers who only have 25 days of annual leave.