Stocks Slump on U.S. Weakness
April 03, 2011
The weighted 30-share IBIS DAX stock index fell 30.03 to 2468.32. Worries about German corporate profits and weak exports were also negative factors, traders said, as was a weaker dollar. IBIS stock prices were lower much of the day, but broadened their losses in late trading. At close of official floor trading session earlier in the day, the DAX stock index of 30 blue-chips dropped 37.79 to 2482.40. The negative factors outweighed indications from German Bundesbank President Hans Tietmeyer that German interest rates still have room to fall slightly and that the dollar should move higher. The U.S. currency was weak late in the German business, sliding to 1.4875 marks from its session peak of 1.4945. The German bond market's gains also were overshadowed by Wall Street declines and the other worries on the stock market. Bond prices rose on expectations for a modest rate cut after this Thursday's regular fortnightly deliberations of the Bundesbank's policy setting central bank council. The benchmark 10-year bond rose in price to 98.99 from 98.86 Friday to yield 6.39% compared with 6.41%. Among advancing shares, software producer SAP climbed 1.50 marks to 215.60 on expectations that the company will announce strong first-half earnings on Thursday. Machinery makers picked up some strength after recent weakness, while car makers and chemicals retreated under the pull of Wall Street and the lower dollar.
