RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Flash crash in German stocks Fri Aug 26, 2011 5:17 am | |
| A flash slide in Germany's stock market dragged down indexes in Europe on Thursday, erasing earlier gains and shaking the confidence of investors cheering a $US5 billion ($A4.78 billion) investment by Warren Buffett in Bank of America.
Germany's main index, the DAX, fell about 250 points in a matter of minutes to trade down more than 4 per cent before recovering somewhat. By the close it was down 1.7 per cent at 5,584.14.
Analysts and traders could not immediately identify a reason for the slide. Thilo Mueller of MB Fund Advisory GmbH said there was no obvious news to send the market down so suddenly and that the drop came "like lightning out of a clear sky". Advertisement: Story continues below
"No one has been able to give a rational explanation... I think this is not the last word, I am eager to see if there is a reasonable answer why so many shares plunged at the same time," Mueller told AP.
Read more: http://www.smh.com.au/business/markets/flash-crash-in-german-stocks-puzzles-traders-20110826-1jcyj.html#ixzz1W7nmzbuw
http://www.smh.com.au/business/markets/flash-crash-in-german-stocks-puzzles-traders-20110826-1jcyj.html |
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