German stocks close lower despite rates cut
German shares closed lower Wednesday despite coordinated
interest rate cuts by world central banks intended to restore business
confidence, reported dpa.
The DAX slumped to 5,013.62, down 5.9 per cent from its Tuesday close and its lowest closing rate since November 2005.
During Wednesday's session the DAX bottomed out at 4,870 before the rates cut helped prompt a rebound. A group of central banks coordinated a rate cut of half a percentage point in most currencies Wednesday.
Robert Halver, analyst with Baaderbank said, "The loss in confidence has been just too great for even a coordinated rates cut to achieve a quick change of mood."
But he hailed the move, saying, "They're grasped how serious the situation is."
Commerzbank shares, which have suffered massive losses in the past week, held their ground for much of Wednesday and closed only 2.5 per cent lower, making them the fourth-best performer in the 30-share DAX index.
Hypo Real Estate (HRE) held up well during the day, but caved late in the session to close 8.0 per cent lower.
Deutsche Bank shares sagged 10.7 per cent.