DAX Drops Below 12.000 Level, Testing a 4-week Low

Forex News

European stock indices weakened, after widespread declines in Asia after China's central bank reduced its reserve requirements for banks. The German DAX stock index fell by 0.93% to trade at 11.993 level. Today, the DAX has dropped to its lowest level since September 12, amid rising yields on US treasury bonds, which continue to weigh on global equity markets.

European shares are also pressured by Italian budget deficit crisis. Bank shares are also broadly down today. Commerzbank has plunged 5.98% and Deutsche Bank has dropped 2.38%.

Today's data showed, that Germany’s industrial output decreased in August for the third consecutive month. The volume of industrial production fell by 0.3% in August after falling by 1.3% in July, although economists had forecast a growth of 0.4%. On an annualized basis, industrial production declined by 0.1%, in contrast to the expected growth of 0.1% and after a growth of 1.5% in July.