News Deutsche Bank stocks plummet, hurting all markets

Discussion in 'The Howard Stern Show' started by RenchFries, Sep 30, 2016.

  1. RenchFries

    RenchFries Official Dawgshed Dutch representative VIP

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    Markets in Europe and Asia lurched lower on the last trading day of the quarter as intensifying concerns about Germany’s largest lender dragged down global stocks.

    Futures pointed to a flat opening for the S&P 500, while the Stoxx Europe 600 fell 0.8% in afternoon trade, echoing losses in Asia.

    Shares of Deutsche Bank AG fell as much as 8.7% to less than 10 euros in the early minutes of European trading Friday to their lowest price in decades, before recovering to trade down around 4.3%.


    The moves followed reports Thursday that some big clients, including influential hedge funds, moved to pull billions of dollars from Deutsche Bank amid concerns about its stability. The bank’s U.S.-traded stock had fallen around 6.7% on Thursday after European markets closed, helping send the Dow Jones Industrial Average down nearly 200 points, its steepest loss in over two weeks.

    Deutsche Bank’s euro-contingent convertible bond also traded at a bid of under 70 cents on the euro early Friday, setting a new intraday record low. More than $440 million of Deutsche Bank bonds changed hands in Europe Friday, based on data by Trax, a MarketAxess subsidiary.

    Worries about the German lender, whose shares are down around 54% so far this year, rippled across the European banking sector on Friday. The Euro Stoxx Banks index was down roughly 3%, around its lowest level since August, while shares in Commerzbank fell nearly 6% as investors also waited for further details on the lender’s restructuring plans and sweeping job cuts.

    “There are concerns about either capital raising or dividend reductions out there against a general backdrop where earnings may be improving but are still held back by modest rates of credit growth,” said Larry Hatheway, chief economist and head of multi-asset at GAM. On top of that, he added, some banks are grappling with asset impairments, while the introduction of negative interest rates is pressuring net interest margins.

    A steep fall in bank shares this year has helped trigger a record spate of outflows from Europe, with investors pulling money from European equity funds for a 34th consecutive week, according to fund-tracker EPFR Global. European equity funds have lost around $95 billion in assets under management since February, according to Bank of America Merrill Lynch.

    “From an economic backdrop, things look better...but the eurozone banking system is still an overriding question,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.

    Risk sentiment was already fragile as oil prices began to pull back from their largest two-dayrally since June. Brent crude oil was last down 0.4% at $49.61 a barrel. Major producers agreed earlier this week to limit oil production, but some investors grew skeptical that a deal would materialize and cashed in their gains.

    As investors sought assets perceived as safe, gold rose 0.1% to $1,327 an ounce. German 10-year government bond yields fell to minus 0.161%, around their lowest since the middle of August, before recovering slightly to minus 0.147%. Ten-year Treasurys were little changed at 1.544% from 1.556% on Thursday. Yields move inversely to prices.

    In currencies, the WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, was up 0.2%. Data showed consumer spending leveled off in August, while core PCE inched slightly higher.

    The euro fell 0.5% against the dollar to $1.1170 after data showed the eurozone’s annual rate of inflation touched its highest level in almost two years in September, but still remained well below the European Central Bank’s target.

    The British pound was flat against the dollar after data pointed to an unexpected pickupin U.K. economic growth in the second quarter.

    [​IMG]ENLARGE
    Worries grew following reports that some big Deutsche Bank clients moved to pull billions of dollars from the bank. PHOTO: WOLFGANG RATTAY/REUTERS
    The dollar rose 0.1% against the yen to ¥101.2370.

    Earlier, shares in Asia mostly closed lower, echoing Thursday’s losses on Wall Street. Japan’s Nikkei Stock Average shed 1.5%, also weighed by data showing Japan’s consumer prices fell in August for a sixth straight month.


    Hong Kong’s Hang Seng Index fell 1.9%, while stocks in Shanghai gained 0.2% after a private gauge of Chinese factory activity edged up, supported by government spending.

    Still, for the quarter, the Hang Seng gained around 12%, outperforming the Shanghai Composite Index at 2.6% and the Nikkei Stock Average at 5.6%.

    The Stoxx Europe 600 was on track to end the quarter around 3% higher, while the S&P 500 was on track to gain around 2.5%.

    Looking forward to the next quarter, U.S. economic data for September and corporate earnings reports will compete with the U.S. election as three dominant drivers of the market view, Mr. Hatheway said.

    —Tassos Vossos, Rob Copeland and Jenny Strasburg contributed to this article.

    http://www.wsj.com/articles/european-shares-pressured-by-deutsche-bank-worries-1475221486
     
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  2. Lemmy

    Lemmy Douchebag Extraordinaire Gold

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  3. unclefreddy

    unclefreddy Well-Known Member

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    What do you call Vaseline in German? DerWienerShlider
    What do you call a German Virgin? GuzIntight
     
  4. sstressed

    sstressed enhancement toker

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    let's burn it all down! :yay:
     
  5. BrulesRules

    BrulesRules Just grab 'em in the biscuits VIP

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    Good to see Big Banks have learned their lesson about risky loans and gambling other people's money. Glad we locked a bunch of them up after 2008.
     
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  6. LonghornJ

    LonghornJ VIP Extreme Gold

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  7. SouthernListen

    SouthernListen Seek truth, not confirmation of your opinions VIP

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  8. HowieStearn

    HowieStearn HateClub

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    the problem world-wide is not enough people are working. there is no getting around that.
    The US debt is $19.5 Trillion-- thats a debt of $61,300 for every person in America, all 318 million of us.

    “The problem with socialism is that you eventually run out of other people's money.” ― Margaret Thatcher

    “Like in a bad horror movie, once-dead socialism has come back to life in the United States, capturing the attention of many young people with promises of free things. Our public education system fails miserably in teaching students about the millions of graves filled over the past century by the horrors of socialism."
    — Former Congressman Ron Paul
     
  9. Vincenzo69

    Vincenzo69 Well-Known Member

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    #Brexit
     
  10. burunduk34

    burunduk34 Well-Known Member

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    Deutchland uber ales.
     
  11. znynick80

    znynick80 Active Member

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    Central Banks will just continue to print like they have been doing for the last 30 years. Nothing to see here. Buy stocks, gold, land, ammo
     
  12. Turtle Man

    Turtle Man Hello Darling

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    #yoursister
     
  13. RenchFries

    RenchFries Official Dawgshed Dutch representative VIP

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  14. 1Vegasgirl

    1Vegasgirl Well-Known Member VIP Gold

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    Isn't the market being artificially propped up anyway?
     
  15. SternsEgo

    SternsEgo Well-Known Member

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    sooo...buy ?
     
  16. beanporn

    beanporn Well-Known Member

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    Yes. The fed controlling the interest rates and keeping them low are propping up the market. If the fed raised the rates investing would sink and people would keep their money in the banks instead. Most financial advisors I know are telling their clients to cash out and sit on the sidelines until the next correction. This market is an illusion.
     
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  17. yahoo

    yahoo Well-Known Member

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    Isn't this the only bank that will do business with Trump?

    No other banks want any part of him. He's too toxic.

    So now what?
     
  18. FeetToTaste

    FeetToTaste Well-Known Member

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    Explain like I'm 5 plz.
     
  19. yahoo

    yahoo Well-Known Member

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    I'm pretty sure whoever the next President is, it's gonna be a very rough economic ride.
     
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  20. burunduk34

    burunduk34 Well-Known Member

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    Obama bad.
    Trump good.
    Vlad excellent.
     
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