EUROPE MARKETS: Deutsche Bank's Plunge Weighs On Heavily European Markets
September 30 2016 - 5:48AM
Dow Jones News
By Carla Mozee and Barbara Kollmeyer, MarketWatch
Reports of hedge funds yanking billions of dollars from the big
German lender
European stock markets fell Friday, as shares of Deutsche Bank
AG plunged on concerns about the lender's financial health,
triggering losses across the financial sector.
The Stoxx Europe 600 index slid 1% to 339.33, but was off
session lows. Still, the pan-European benchmark is looking at
losses for the week, the month and quarter. The index on Thursday
(http://www.marketwatch.com/story/european-stocks-jump-as-opec-surprises-with-plan-to-cut-oil-output-2016-09-29)
finished a choppy session barely higher, closing up less than 0.1%
at 342.72.
Shares of Deutsche Bank (DBK.XE) (DBK.XE) (DBK.XE) were off
4.5%, after losing more than 7% early in the session. The stock
traded briefly under 10 euros, its lowest level on record, as the
market got its first chance to react to reports that some of
Deutsche Bank's biggest clients have been pulling out funds
(http://www.marketwatch.com/story/fearful-clients-pull-billions-of-dollars-out-of-deutsche-bank-2016-09-30).
That news weighed heavily on U.S. stocks Thursday
(http://www.marketwatch.com/story/wall-street-stocks-could-struggle-as-euphoria-over-opec-deal-fades-2016-09-29),
with the Dow industrials closing down nearly 200 points. Asian
stocks
(http://www.marketwatch.com/story/asian-shares-rattled-by-concerns-over-oil-deutsche-bank-2016-09-30)
also had a mostly losing session, as financia stockls fell across
Japan and elsewhere.
(http://www.marketwatch.com/story/fearful-clients-pull-billions-of-dollars-out-of-deutsche-bank-2016-09-30)"What
must be understood here is that Deutsche Bank is the main clearing
house for trades in Europe," David Buik, market commentator at
Panmure Gordon & Co., said in a note to clients Friday. "With
over $60 trillion derivative book at the Deutsche Bank, the
government is totally incapable of even understanding how to deal
with this crisis."
Read:Deutsche Bank crisis threatens to roil global markets
(http://www.marketwatch.com/story/a-crisis-in-european-banks-threatens-to-roil-global-markets-2016-09-28)
Panic spreads: Deutsche Bank's woes infected the rest of the
European banking sector, which tumbled as concerns about the German
bank intensified. Commerzbank AG (CBK.XE) fell 5.5%, France's
Credit Agricole SA (ACA.FR) dropped 3.2%, and Barclays PLC (BCS)
(BCS) shed 2.4%.
The Stoxx Europe 600 Bank Index was pushed 2.2% lower Friday,
and was on track for a monthly loss of 5.5%.
Pressure on banks hurt national indexes. France's CAC 40 index
was down 1.4%, Italy's FTSE MIB gave up 1.2%, and the FTSE 100
index was 1% lower.
The biggest losses on indexes were seen in Spain, where the IBEX
35 dropped 2% as heavyweights Banco Santander ES (SAN) (SAN) and
BBVA SA (BBVA) (BBVA) fell 4% each.
Other movers: Telefónica SA (TEF) shed 4.4% after the Spanish
telecommunications company on Thursday canceled a planned initial
public offering of its Telxius infrastructure business because of
tepid investor demand.
Airbus Group SE (AIR.FR) declined 1.2%, with the aerospace
heavyweight set to cut
(http://www.marketwatch.com/story/airbus-to-cut-management-jobs-in-internal-merger-2016-09-30)
an unspecified number of management jobs as part of a restructuring
plan.
(END) Dow Jones Newswires
September 30, 2016 05:33 ET (09:33 GMT)
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