U.S. Crisis Pressures Market
May 16, 2011
The 30-share IBIS-DAX stock index, which tracks prices in electronic trading, fell 9.61 to end the day at 2528.73. The decline added to more substantial losses posted earlier in the day in official floor trading. The 30-share DAX stock index, which tracks price trends in floor trading, fell 22.11 to 2510.77. The DAX and the IBIS-DAX are composed of the same stocks and weightings though they track trends in two separate marketplaces. The local bond market added to pressure on share prices, with the price of the benchmark 10-year bond falling to 98.93 from Monday's settlement at 99.02. Its yield rose to 6.39%. Traders said the market's slide was stopped temporarily, as dealers reacted to a lower-than-expected U.S. National Association of Purchasing Managers' August index, which eased fears of strong U.S. economic growth and rising U.S. interest rates. However, disappointment over the dollar's performance helped pushed share prices lower again later in the day. The dollar was quoted at 1.4893 marks late Tuesday, compared with 1.4866 marks late Monday. Among actively traded stocks, Lufthansa continued to suffer from Monday's news that the German cartel office was investigating it for possibly charging excessively high prices. Lufthansa slipped 6.75 marks to 201.50.
