No one is certain what caused the flash crash in German markets, but it may have been a rumour of a ratings downgrade.
All three ratings agencies quickly reaffirmed the triple A rating, according to Reuters’ Anujli Davies.
Germany has only recovered slightly after crashed down over 3% in a matter of minutes.
Commentators on Bloomberg TV speculated that the selloff also may have been caused by a fat finger error.
There was also a rumour of a short-selling ban in Germany, according to twitter chatter.
All of Europe has moved into the red, with bad debt headlines including new criticism for Merkel at home, Bank of England activating an ECB swap line and Greece activaing emergency liquidity measures.