Around the world's markets: Frankfurt

THE XETRA DAX slumped 2.65 per cent as traders were disappointed by a weak opening performance in New York. The index was down 123.31 points by the close, to 4,524.55 points.

Some stocks defied the slump, including Deutsche Bank, up 2 per cent on continued rumours of a takeover of Bankers Trust.

Deutsche Telekom was hit by heavy selling amid talk it was about to issue a profits warning. Its shares slumped nearly 7 per cent, to 49.10 marks, after a business magazine reported profits would drop in 1999.