By Riva Gold 

Markets in Europe and Asia lurched lower on the last trading day of the quarter as intensifying concerns about Germany's largest lender dragged down global stocks.

Futures pointed to a flat opening for the S&P 500, while the Stoxx Europe 600 fell 0.8% in afternoon trade, echoing losses in Asia.

Shares of Deutsche Bank AG fell as much as 8.7% to less than 10 euros in the early minutes of European trading Friday to their lowest price in decades, before recovering to trade down around 4.3%.

The moves followed reports Thursday that some big clients, including influential hedge funds, moved to pull billions of dollars from Deutsche Bank amid concerns about its stability. The bank's U.S.-traded stock had fallen around 6.7% on Thursday after European markets closed, helping send the Dow Jones Industrial Average down nearly 200 points, its steepest loss in over two weeks.

Deutsche Bank's euro-contingent convertible bond also traded at a bid of under 70 cents on the euro early Friday, setting a new intraday record low. More than $440 million of Deutsche Bank bonds changed hands in Europe Friday, based on data by Trax, a MarketAxess subsidiary.

Worries about the German lender, whose shares are down around 54% so far this year, rippled across the European banking sector on Friday. The Euro Stoxx Banks index was down roughly 3%, around its lowest level since August, while shares in Commerzbank fell nearly 6% as investors also waited for further details on the lender's restructuring plans and sweeping job cuts.

"There are concerns about either capital raising or dividend reductions out there against a general backdrop where earnings may be improving but are still held back by modest rates of credit growth," said Larry Hatheway, chief economist and head of multi-asset at GAM. On top of that, he added, some banks are grappling with asset impairments, while the introduction of negative interest rates is pressuring net interest margins.

A steep fall in bank shares this year has helped trigger a record spate of outflows from Europe, with investors pulling money from European equity funds for a 34th consecutive week, according to fund-tracker EPFR Global. European equity funds have lost around $95 billion in assets under management since February, according to Bank of America Merrill Lynch.

"From an economic backdrop, things look better...but the eurozone banking system is still an overriding question," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.

Risk sentiment was already fragile as oil prices began to pull back from their largest two-day rally since June. Brent crude oil was last down 0.4% at $49.61 a barrel. Major producers agreed earlier this week to limit oil production, but some investors grew skeptical that a deal would materialize and cashed in their gains.

As investors sought assets perceived as safe, gold rose 0.1% to $1,327 an ounce. German 10-year government bond yields fell to minus 0.161%, around their lowest since the middle of August, before recovering slightly to minus 0.147%. Ten-year Treasurys were little changed at 1.544% from 1.556% on Thursday. Yields move inversely to prices.

In currencies, the WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, was up 0.2%. Data showed consumer spending leveled off in August, while core PCE inched slightly higher.

The euro fell 0.5% against the dollar to $1.1170 after data showed the eurozone's annual rate of inflation touched its highest level in almost two years in September, but still remained well below the European Central Bank's target.

The British pound was flat against the dollar after data pointed to an unexpected pickup in U.K. economic growth in the second quarter.

The dollar rose 0.1% against the yen to Yen101.2370.

Earlier, shares in Asia mostly closed lower, echoing Thursday's losses on Wall Street. Japan's Nikkei Stock Average shed 1.5%, also weighed by data showing Japan's consumer prices fell in August for a sixth straight month.

Hong Kong's Hang Seng Index fell 1.9%, while stocks in Shanghai gained 0.2% after a private gauge of Chinese factory activity edged up, supported by government spending.

Still, for the quarter, the Hang Seng gained around 12%, outperforming the Shanghai Composite Index at 2.6% and the Nikkei Stock Average at 5.6%.

The Stoxx Europe 600 was on track to end the quarter around 3% higher, while the S&P 500 was on track to gain around 2.5%.

Looking forward to the next quarter, U.S. economic data for September and corporate earnings reports will compete with the U.S. election as three dominant drivers of the market view, Mr. Hatheway said.

Tassos Vossos, Rob Copeland and Jenny Strasburg contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

September 30, 2016 09:14 ET (13:14 GMT)