Friday 30 September 2016

Global stocks fall as financials hit by $14bn Deutsche Bank fine

Bloomberg/Reuters

Published 17/09/2016 | 02:30

Shares in RBS fell. Photo: Philip Toscano/PA Wire
Shares in RBS fell. Photo: Philip Toscano/PA Wire

Global stocks fell as renewed selling in crude, which took oil to a one-month low, sank energy shares.

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The Stoxx Europe 600 Index capped its worst week since June, with Deutsche Bank plunging 8.5pc after saying the US Department of Justice is seeking $14bn to settle claims of mortgage-backed securities sold during the housing boom.

Lenders dragged the gauge lower yesterday, as Royal Bank of Scotland and Credit Suisse fell more than 4pc, along with deep losses at some Italian and Portuguese firms.

Volatility returned to global financial markets in the week as central banks signal they are rethinking their approach to the monetary stimulus that's bolstered assets from stocks to bonds for the past five years.

In Ireland, the ISEQ Overall Index shed 0.7pc to end the session at 6085.80.

Shares in Bank of Ireland were dragged lower by the broader negative sentiment towards European lenders. It closed down just over 1pc at 18.8 cent, having recovered some of an earlier loss of as much as 2.6pc. Ryanair gained 1.5pc to €13.24, however, while agri firm Origin Enterprises sank 5.4pc to €5.26.

Other movers included ferry group Irish Continental, which lost 3.7pc to €4.40.

The UK's FTSE-100 dipped 0.3pc, while France's CAC-40 was 0.9pc lower. Germany's DAX closed down 1.5pc.

In the UK, Barclays shed 2.8pc, while Royal Bank of Scotland was down 4.4pc at the close. Lloyds was 0.4pc lower.

Some healthcare stocks managed to rise and outperform the weaker overall market.

AstraZeneca rose 2pc after the company said combining its Forxiga type-2 diabetes drug with older medicine Bydureon was more effective at controlling blood sugar levels than treatment with either drug on its own.

Irish Independent

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