Reaching a mortgage deal would clear a major hurdle for Deutsche Bank, which has paid more than $9 billion in fines and settlements since the start of 2008, according to data compiled by Bloomberg.
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The Nasdaq gave up 5.12 (-0.10 percent) to close at 5,244.57, while the S&P 500 finished at 2,139.16, down 8.10 (-0.38 percent) from its open. 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.
The concern comes after The Wall Street Journal reported late Thursday that the Justice Department proposed the bank pay $14 billion to settle several high-profile mortgage probes in the US dating back to securities the bank sold between 2005 and 2007.
Brent crude settled down 82 cents, or 1.76%, at $45.77 a barrel, while U.S. crude settled down 88 cents, or 2%, at $43.03.
The FTSE 100 ended a hard week in the red after falls in United Kingdom banking shares due to a shock fine by USA regulators for Germany’s Deutsche Bank. Royal Bank of Scotland Group fell 30 cents, or 6 percent, to $4.86.
EUROPE DRAGS: The news out of Deutsche Bank dragged European stocks lower, with Germany’s DAX down 1.5 percent, France’s CAC-40 index down 0.9 percent and the U.K.’s FTSE 100 index down 0.1 percent.
Meanwhile the uptick in inflation is likely to be welcomed by a number of Fed officials when they meet next Tuesday and Wednesday to deliberate on monetary policy.
“By the Fed’s own criteria, everything is in place for them to raise rates”.
The “number is almost fourfold higher what analysts were anticipating”, said Naeem Aslam, chief market analyst at Think Markets UK, in a note.
JPMorgan Chase and Citigroup each lost 1 percent. Novavax has no active products on the market and this drug was their furthest in development.
NEW NEIGHBORS: The S&P 500 is adding a new industry to its traditional groups for the first time since the dotcom era.
MSCI’s world stocks index was down 0.49 per cent and notched its second straight weekly loss. After the announcement of this news, the shares of the German banking giant fell by more than 6% in the after-hours trading.
Crude oil tumbled about 2 percent with prices hitting $43 a barrel. Brent crude, used to price global oils, fell 69 cents to $45.90 per barrel.
Benchmark 10-year notes were last up 3/32 in price to yield 1.69 per cent, after trading at 1.67 percent before the data.
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CURRENCIES: The euro slipped 0.1 percent to $1.1227 while the dollar was off 0.3 percent against the yen at 101.97 yen.
