DAX Nosedives On Fed Worries; Linde Shares Tumble 8%

(RTTNews) - German stocks tumbled on Monday as fears of a possible U.S. interest-rate increase gripped markets.

With recent comments from some Fed officials keeping hopes alive for a September rate hike, the ECB standing pat on monetary policy and uncertainty prevailing over what the Bank of Japan is going to do at its September 20-21 meeting, it is feared that central banks are running out of stimulus options to boost economic growth.

The benchmark DAX was down 209 points or 1.97 percent at 10,364 in late opening deals after declining 1 percent on Friday.

Lender Commerzbank tumbled 3.5 percent on a report that it plans to dismantle its investment bank to reduce costs.

Industrial gas maker Linde fell almost 8 percent after the German industrial gas maker and Praxair Inc. agreed to terminate talks about a possible merger.

Utility E.ON plunged 13 percent after completing the Uniper spin-off as planned.

Reinsurance company Hannover Re declined 1.5 percent despite confirming its 2016 year-end targets.

Fraport lost over 3 percent on reporting a 5 percent decline in August passenger traffic at its Frankfurt Airport.

Gerresheimer dropped 1.5 percent. The drug delivery devices maker said it would sell its joint venture Life Science Research business to Duran group, a portfolio company of One Equity Partners.

RIB Software soared 9 percent after announcing formation of a joint venture and increasing its guidance for 2016 EBITDA.