• Germany's news in English

Euro crisis hits DAX index hard

The Local · 4 Jun 2012, 16:49

Published: 04 Jun 2012 16:49 GMT+02:00

Facebook Twitter Google+ reddit

Germany's most important market index lost 1.4 percent in the first few minutes of trading, though it had recovered slightly by midday. The last time the DAX dropped below the psychologically important 6,000-point mark was January 9.

"As well as the worries about the eurozone – especially Spain and its troubled banking sector – we now have increasing worries about the global economic situation," said trader Markus Huber of ETX Capital. The weak employment stats released in the US last Friday have also exacerbated the situation, as has slower growth in China's service industry.

The German government moved quickly to reassure the markets, saying the DAX drop did not represent an escalation Europe's debt crisis.

Finance Ministry spokesman Martin Kotthaus said on Monday that the euro and the markets had continually risen and fallen since the crisis began in 2008. "Now we just have to wait and see what happens in the next days and weeks," he added.

The European index EuroStoxx 50 recovered from the initial blow, and ended up gaining half a percent by midday.

Story continues below…

The Local/DPA/bk

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

17:50 June 4, 2012 by IchBinKönig
Its coming. very soon. what so many here never saw coming. where is the oil being traded in euros, geniuses? redemption. I hope it hurts, you deserve it.
18:44 June 4, 2012 by wolfgang60
Dax drop!

Oh man ...Oh man... I'm waiting so long here that my eternal enemy will suffer like what i suffered now. lol ...
19:02 June 4, 2012 by hallopeople
All go down. But at least we got a gratis house.
19:07 June 4, 2012 by wolfgang60
gratis from tax payers money?
Today's headlines
These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd