Shares prices fell and rose again in Frankfurt on Wednesday as the US Federal Reserve enacted an emergency 75 basis point cut. During the afternoon, the Dax, a composite index of the 30 biggest German companies, had fallen almost 6 percent and was at 6386 points, its lowest point since December 2006.
High level EU politicians have cautioned against panic after two days of turbulence on the financial markets. Jean-Claude Juncker, Prime Minister of Luxembourg and Euro group president said that while he is not ruling out the possibility of a recession in the US, he does not believe that the credit crisis will necessarily mean a slowdown for the Eurozone economy. He warned about exaggerated pessimism late Monday and said “In comparison to the US, the fundamental data in Europe is solid.”
