LONDON: European stocks markets retreated on Friday, with shares in Deutsche Bank slumping as US authorities hunted down Germany’s biggest lender over a record fine.
Around 1015 GMT, London’s benchmark FTSE 100 index slipped 0.1 percent.
In the eurozone, Frankfurt’s DAX 30 and the Paris CAC 40 each shed 0.5 percent compared with the close on Thursday.
Authorities in the US are seeking up to $14 billion (12.5 billion euros) from Deutsche Bank to resolve allegations stemming from the sale of mortgage securities in the 2008 crisis, the German financial giant confirmed in an overnight statement. T
Deutsche shares sank 8.0 percent to 12.0 euros in midday deals in Frankfurt, while the US action was felt across Europe’s banking sector, with shares in Royal Bank of Scotland in London shedding 4.0 percent to 186 pence.
In Paris, French lender Societe Generale slid 2.0 percent to 31.39 euros.
The pursuit of Deutsche has “serious implications for RBS, which is among a number of European institutions that could face similar claims from the US Department of Justice”, noted Neil Wilson, markets analyst at ETX Capital in London.
Fed set to hold rate
Asian stock markets meanwhile tracked Thursday’s rally on Wall Street after another round of below-par US data doused expectations for a Federal Reserve interest rate hike next week.
Equities globally have suffered during a volatile week as top Fed officials gave conflicting views on the need for tighter monetary policy, fuelling uncertainty across trading floors.
But the chances of a move at next week’s Fed policy meeting were diminished Thursday with the release of lacklustre US retail sales figures as well as weak readings on industrial output and wholesale inflation.
New York’s top three indices surged more than one percent Thursday, which in turn filtered through to Asia, where trade was thin due to public holidays.
Tokyo ended 0.7-percent higher, while Sydney jumped one percent, Singapore also added 0.7 percent and Wellington climbed 0.8 percent.
Shanghai, Hong Kong, Seoul, Kuala Lumpur and Taipei were shut.