SHOOT: Germany's move to outlaw speculative trading on its own bourses has caused the JSE to plummet 2.5% within the first 3 hours of trading. The dollar is on its way to parity against the euro.
Johannesburg - The JSE fell by more than 1% during the
first hour of trading on Wednesday - in line with a downward trend on
Asian markets - after Germany banned the short selling of bonds issued
by
governments of countries in the eurozone.
At 10:00 the JSE was down 1.49% at 27 162.74
points.
Late on Tuesday the German financial regulator, Bafin
banned the naked short selling of bonds issued by governments of
countries in the eurozone. The new regulations come into force on
Wednesday.
The German government blames such financial instruments
for allowing speculators to bet against the sovereign debt of countries
like Greece, thereby worsening the euro crisis.
The Asian losses come after major US stock indices
plummeted on Tuesday as concerns grew about the broader stability of the
euro and European economies.
The dollar soared against the euro to
€82.14 from €80.67 on Monday.
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clipped from www.fin24.com
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