Jorg Eigendorf, head of communications and senior group director at Deutsche Bank, said that the bank had a “comfortable cushion” after the DOJ suggested that the bank pay $14 billion to settle a number of investigations related to mortgage securities. The bank’s €1.75 billion of 6 per cent additional Tier 1 bonds, the first notes that would take losses, fell 5 cents to 78 cents on the euro, the biggest drop since the United Kingdom voted to leave the European Union.
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The S&P 500 index showed three new 52-week highs and no new lows, while the Nasdaq recorded 27 new highs and 13 new lows.
US and European stocks were moderately lower in early trading Friday after Deutsche Bank said it wouldn’t settle with the Department of Justice over its role in the 2008 financial crisis.
Shares in Deutsche Bank AG plunged after the company said it did not intend to pay the $14 billion proposed by the U.S. Department of Justice to settle civil claims.
FILE – In this Monday, July 6, 2015, file photo, a man uses a mobile phone while walking by a building in the Financial District in NY.
Energy stock prices were cut by a drop in oil futures as rising Iranian exports and returning supplies from Libya and Nigeria fueled concerns a global glut would persist. US stocks are slightly higher in early trading Wednesday, Sept. 14, 2016, as utility companies climb.
“With nothing in the economic numbers to say U.S. rates should be moving up, and growing signs of losing momentum, expectations have largely diminished toward the Fed doing anything in September”, said ANZ Bank New Zealand chief economist Cameron Bagrie. “This has understandably sent ripples across the sector”, he said. Most of the volatility has come as investors prepare for the Fed meeting.
The S&P 500 Index fell 0.6 per cent to 2,134.37 at 11:03am in NY, after rising yesterday for the first time in three sessions.
Spot gold prices XAU= slid 0.25 percent to $1,310.50, a two-week low. Some analysts believe the Bank of Japan may increase asset purchases up to 100 trillion yen a year from the current 80 trillion yen a year, or take its negative policy rate to minus 0.3 percent from minus 0.1 percent. Shares were more than 4 percent higher in premarket trade. Markets were closed in China, Hong Kong, Taiwan and South Korea. Brent crude, used to price worldwide oils, fell 82 cents to $45.77 per barrel.
OIL PRICES: Benchmark U.S. crude lost 36 cents to $43.56 per barrel in electronic trading on the New York Mercantile Exchange.
“News flow over last couple of months has been centered on one major topic: Brexit”, said Joseph Dickerson, an analyst at Jefferies International Ltd.in London. The new industry component will be effective at the end of trading Friday. Pandora says it has revamped its $5 a month Internet radio service, Thursday, Sept. 15, 2016, giving listeners the ability to skip and replay more songs.
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Asian stock markets meanwhile tracked Thursday’s rally on Wall Street after another round of below-par U.S. data doused expectations for a Federal Reserve interest rate hike next week.
