DAX-Sentiment: Impatient Investors24. January 2013 by Gianni Hirschmüller
A DAX correction was welcome – whatever the reason.
23 January 2013. FRANKFURT (Börse Frankfurt). The DAX index suffered a puzzlingly mid-session setback yesterday. Without any apparent news release or event, it slid 1.5 percent within minutes to the year low. It later emerged that traders had been spooked by an unconfirmed report that German Bundesbank chief, Jens Weidmann, had resigned. The rumour was immediately denied (it is even the subject of an official investigation for market manipulation) and the market regained its composure. We have yet figured out why investors would see the departure of the German representative on the ECB’s Governing Council as negative for stocks. After all, Weidmann was the lone dissenting voice when the Bank proposed its market-boosting OMT policy. However, we can understand why someone might want to see the equity market lower – aided, if necessary, by a spurious ‘tweet’…
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