S&P Futures, Global Stocks, Euro Dragged Lower By Deutsche, Geopolitics, French Election Worries
by Tyler Durden
ZeroHedge.com
Mar 6, 2017
European shares and S&P futures are modestly lower this morning, dragged down by fresh geopolitical concerns out of North Korea which last night fired 4 ballistic missiles, by renewed political jitters ouf of France where Alain Juppe announced he would not run in the presidential election, from Deutsche Bank whose aggressive equity offering has weighed on local stocks, and from China’s announcement over the weekend in which it modestly cut its economic outlook. Risks were magnified following concerns of political stability in the US after President Trump’s accusation that his predecessor Barack Obama wiretapped him overshadowed a flurry of M&A activity in Europe.
As a result, caution has rippled through equity markets while metals slumped on Chinese growth prospects and the French presidential race continued to roil the euro.
The Stoxx Europe 600 index was down 0.4% dragged by miners and banks as Deutsche Bank announced it was reversing course with an overhaul to raise capital. Deutsche Bank shares slumped 6% after Germany’s biggest lender said it needs to issue more shares to raise 8 billion euros of capital. “The question is whether this will be the last capital hike or whether the bank will need more yet again in a few years,” said Stefan de Schutter, a trader at Frankfurt-based Alpha, referring to Deutsche. “Until now, none of the restructuring measures have borne fruit.”
Deutshce pressured European banking stocks and weighed on broader indices, offsetting a rise in shares of asset management firms after Aberdeen and Standard Life set the terms of their 11 billion pound tie-up. Both stocks rose more than 6 percent.
The FTSEuroFirst index of 300 leading shares and Germany’s DAX fell as much as 0.7 percent, both hit by the slide in Deutsche Bank. The European banking index was down 1 percent.
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