Post date: Aug 09, 2011 10:11:32 AM
Germany's DAX falls under 6,000 points again as world stocks fall 1.5 percent and recession fears grow.
FRANKFURT, GERMANY (AUGUST 9, 2011) REUTERS - Germany's DAX fell temporarily by more than 6 percent on Tuesday (August) as world stocks sank sharply for a 10th session running, racking up a 20 percent loss since early May, and gold hit another record high as investors continued to dump riskier assets in highly volatile markets.
Focus was on a meeting of the U.S. Federal Reserve later in day, with investors likely to scour for hints about any new monetary stimulus programme with fears of a new global downturn growing.
Higher-than-expected inflation data from China added to investor concerns, with the United States slowing and its credit rating downgraded, and Europe reeling under a debt crisis.
"We still live in difficult times. Rollercoaster times, that's the stock exchanges and this kind of cacophonie coming up from politicians is absolutely a madness. It is naive to get these assumptions and suggestions from politicians to say what can we do to get rid of the problems. It is no solution to say: Italy, please sell your gold, it's no solution. We need a much bigger solution. How can we get rid of this tremendous madness, of this tremendous inability of politicians o get real solutions," trader at Baader Bank, Robert Halver told Reuters TV at the Frankfurt stock exchange.
European bourses put in a short-lived attempted at gains at the open, but succumbed to the overall mood. The FTSEurofirst 300 index of top European shares was down 3.5 percent, losing ground for the eighth session in a row and hitting a two-year low.
Gold posted another record high as investors sought some haven for their money. It was up 2 percent at more than $1,750 an ounce. It gained more than three percent on Monday.