GERMANY: Germany's DAX on rise after U.S. Federal Reserve cuts one of its interest rates / Germany says their are no plans for G7 market talks
- 00:00:45
- ITN Source
GERMANY: Germany's DAX on rise after U.S. Federal Reserve cuts one of its interest rates / Germany says their are no plans for G7 market talks
Germany's stocks, along with European stocks, surge after the U.S. Federal Reserve cut one of its interest rates in a bid to improve credit conditions and calm rattled financial markets. Wall Street and European stocks rose sharply on Friday (August 17) after the U.S. Federal Reserve slashed its interest rate on loans to commercial banks in a bid to defuse a growing credit crisis and calm rattled financial markets. The U.S. dollar fell against the euro and other major currencies as some dealers said the move by the Fed could be interpreted as a step toward cutting its benchmark interest rate. As markets recovered from recent losses International authorities are in close contact to keep on top of financial market turbulence, top German policymakers said on Friday (August 17), but there are no plans for a special Group of Seven summit. German Finance Minister Peer Steinbrueck, whose country holds the presidency of the G7 industrialised nations this year, said there was already good cooperation. "The necessary contacts on all levels exist, both on a national and an international level, and it's working well. (The contacts) correspond appropriately with the degree of problems we are dealing with. Thanks to these contacts I hope that we can avert further turbulences," he said after talks with Bundesbank President Axel Weber at an event to mark the 50th anniversary of the German central bank. Markets have been battered by fears of financial instability following troubles with risky U.S. mortgages and a squeeze on credit that had already prompted central banks, including the Fed, to pour money into the financial system. Many long-term investors and analysts, however, continue to maintain that economic fundamentals bode well for the future and stock losses may turn out to be a good buying opportunity.
ITN Source | August 18, 2007
