With investors apparently encouraged by German government's bank rescue plan revealed by German press, German shares rebounded strongly in Monday morning's trading in Frankfurt Stock Exchange.
The DAX, index of 30 big companies, soared over 200 points during the first ten minutes after the opening of the Frankfurt Stock Exchange on Monday morning.
Two and half hours later, however, the DAX overpassed the benchmark of 300 points. At 10:57 a.m. local time (0957 GMT), the DAX surged 300.82 points, up 6.62 percent to stand at 4.845.13 points.
Observers believed that the surge stemmed from the press reports that the German government would announce a huge rescue package later on Monday afternoon.
German news agency DPA reported that Germany is to inject 70 billion euros (some 95 billion U.S. dollars) into the banking system of the country this week as part of a rescue plan for the world economic system.
Germany's Finance Ministry would be authorized to use the funds to cover a liquidity injection for the banks and to take over tainted securities, DPA cited governmental sources as saying.
Up to 400 billion euros (about 543 billion dollars) more would be offered in government guarantees.
Germany will set up a government fund that will inject money into the banks while accepting troubled assets from the banks as security.
German Chancellor Angela Merkel was expected to speak to the media in the afternoon, according to the news agency.
Source: Xinhua
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