German Shorting Ban Triggers Global Share Sell-off, But Euro Rallies On Intervention Talk
THE TELEGRAPH: World stock markets tumbled as investors digested Germany's unilateral ban on short-selling but the euro rallied from fresh four-year lows on talk of central bank intervention.

European bourses, which followed Asian shares lower, slid further when the Dow Jones opened down 1pc. The FTSE 100 sank 2.5pc, Germany's DAX lost 2.2pc, and France's CAC fall 2.4pc. Japan's closed down 0.5pc and Hong Kong 1.8pc.

The euro, which has been volatile, spiked more than than a cent against the dollar to above $1.23 at 2pm on rumours that the Swiss National Bank or European Central Bank had entered the market.

"Euro is popping all over as talk is going around that the ECB may be considering intervention," said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey.

"It looked like the Swiss were in earlier, though that hasn't been confirmed, so we're left to speculate. But the market is exceptionally short euro, and with it bouncing today, the wind would be at their back." >>> | Wednesday, May 19, 2010

Market Chaos Warning After German Ban on Shorting
THE TELEGRAPH: Traders are predicting chaos on the world's second-largest government bond market after the German authorities on Tuesday announced a ban on all naked short-selling in European public debt, as well as shares in the country's 10 largest financial institutions.

The unprecedented step saw the euro sink to a four-year low after Germany said that from midnight shorting of credit default swaps of any European government would be banned.

The prohibition is an attempt to counter speculators that Berlin believes are trying to destabilise the region's sovereign bond market.

Traders greeted the move by BaFin, the German regulator, with a mixture of anger and astonishment. One bond trader said he expected Wednesday's trading session to be one of the most volatile in living memory: "It will be complete chaos, I really don't know what the Germans think they are doing." >>> Harry Wilson, Financial Services Correspondent | Tuesday, May 18, 2010

THE TELEGRAPH: European shares set to fall as euro slides on German ban: European shares were set to fall sharply on Wednesday, as investors' confidence was rattled by Germany's decision to ban naked short-selling of some bonds, stocks and credit protection, prompting weakness in Asian equities and the euro. >>> | Wednesday, May 19, 2010

News Hub: Euro Zone Worries Spread