The claim far outstrips the bank’s and investors’ expectations.
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In Toronto, the S&P/TSX composite index shed 52.98 points to 14,450.69. Eight of the index’s 10 main groups were lower.
For the week, the index was down 0.6 per cent, on track for its fourth negative week in five.
Brent crude LCOc1 settled down 82 cents, or 1.76 percent, at $45.77 a barrel, while USA crude CLc1 settled down 88 cents, or 2 percent, at $43.03.
Shares of Italy and Portugal fell the most in western Europe, while most Stoxx 600 industry groups declined.
Declining issues outnumbered advancing ones on the NYSE by 1,989 to 911. The index was posting no new 52-week highs and 2 new lows.
Banks also fell, led by a plunge in Deutsche Bank after the giant German bank said it wouldn’t settle with the Department of Justice over its handling of mortgage-backed securities in the run-up to the 2008 financial crisis.
The bank’s 1.75 billion euros of 6 percent 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. Deutsche Bank’s USA -listed shares were down 9.2 per cent.
The biggest losing sector was health care, but gold stocks fell 1.21 per cent, energy 0.47 per cent and financials 0.54 per cent.
The pursuit of Deutsche has “serious implications for RBS, which is among a number of European institutions that could face similar claims from the U.S. Department of Justice”, noted Neil Wilson, markets analyst at ETX Capital in London.
Fines of this eye-watering size aren’t unheard of.
Traders have all but ruled out the possibility of the Federal Reserve raising interest rates at its meeting that starts next Tuesday.
The week was dogged by worries among investors that central banks are hesitant to continue pumping monetary stimulus into the financial system as part of efforts to bolster inflation rates and support economic growth.
At 9:39 a.m. ET (1339 GMT), the Dow Jones industrial average was down 90.12 points, or 0.49 per cent, at 18,122.36.
The Standard & Poor’s 500 index lost 8 points, or 0.4 percent, to 2,139.
The sale of Deutsche’s stake in Hua Xia, a Chinese bank, is expected to make up around 0.5 points of the gap. It posted a 20% fall in second quarter revenues and a 67% drop in profits. The iPhone maker’s stock was up 12 percent for the week and it posted its first four-day winning streak with consecutive gains over 2 percent since April 2009.
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INTEL INSIDE: Chipmaker Intel rose 71 cents, or 2 percent, to $37.27 after the company raised its revenue forecasts, citing stronger-than-expected demand for personal computer chip products.
