EU facing IMMINENT recession? Germany on brink as warning issued over Deutsche Bank
FEARS of a recession in the Eurozone are rising as Germany’s economy shows yet more signs of buckling under global and domestic financial pressures.
By LANA CLEMENTS
Express.co.uk
Feb 9, 2016
Investors were shocked today after industrial production from Europe’s linchpin economy was revealed to have unexpectedly plunged again in December.
It’s the second month in a row factory output in Germany has slowed, and suggests the country is suffering more heavily than initially thought from reduced demand for goods from China and emerging markets.
At the same time, Germany’s top stock market the DAX, measuring the values of the country’s biggest firms, has hit a two-year low.
The index fell by three per cent yesterday alone and is one of the worst performing stock markets in the world this year, after losing 14.5 per cent since the start of January.
Shares in Germany’s biggest bank Deutsche Bank have dropped to lows not seen since 2009 at the height of the financial crisis, after plunging 40 per cent this year alone – showing the scale of trader’s fears over the firm’s stability.
Michael Hewson, chief market Analyst at CMC Markets UK, said: “We have Germany’s Deutsche Bank, whose shares have plunged to levels last seen in 2009 at the height of the financial crisis, and is down nearly 40 per cent this year alone, over concerns about the resilience of its balance sheet.
“The cost of insuring the German banks debt against default surged yesterday, as investors took fright, and as we know from Lehman Brothers, no matter how healthy a bank looks on the surface, sentiment can deteriorate very quickly.”
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