Late Deutsche Bank relief rally lifts markets into the close
Published 01/10/2016 | 02:30
Stock prices across major markets stabilised yesterday, while the euro recovered as Deutsche Bank's shares rebounded from a record low.
In Dublin the Iseq fell early before clawing its way back to end the session up 0.27pc 6,014.20.
Brent crude prices fell as traders booked profits on a rally underpinned by an Opec agreement to reduce output for the first time in eight years to address global oversupply.
US and German government bond yields rose as investors trimmed holdings in reaction to the gains on Wall Street and in European equity markets.
"Wall Street was right to worry about Deutsche Bank, but yesterday was a bit of an overreaction, and we're walking back a little bit today," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh, Pennsylvania.
Deutsche Bank's US-listed shares were last night up over 13pc at $13.02, while its Frankfurt-listed shares were up 6pc, rebounding from a record low of €9.898 earlier yesterday.
AFP reported late yesterday that Germany's largest lender is near to reducing its $14bn settlement from Unites States authorities to $5.4bn.
The heavier amount had raised investor fears about Deutsche Bank's stability and whether it would be able to raise the cash to pay the settlement.
The Dow Jones industrial average was up 189.32 points, or 1.04pc, to 18,332.77, the S&P 500 was 19.05 points, or 0.89pc, higher at 2,170.18 and the Nasdaq Composite was up 42.70 points, or 0.81pc, to 5,311.85.
With oil in focus after this week's Opec meeting, Brent crude was last down $0.25, or 0.51pc, at $48.99 a barrel, but US crude was $0.30, at $48.13 per barrel.
Traders cut safe-haven holdings of low-yielding US and German government bonds.