Europe stocks close lower, Deutsche Bank falls 7.9%
European markets closed lower on Monday as investors contemplated a rate rise by the U.S. Federal Reserve and digested merger news.
The pan-European Stoxx 600 was down 0.52 percent at the close with basic resources stocks leading the losses on news of an expected slowing of growth in China.
The FTSE 100 in London was down 0.3 percent, Frankfurt’s Dax slid 0.6 percent and the CAC 40 in Paros dipped 0.5 percent.
Banking stocks were also down by about 1.23 percent, with shares of German lender Deutsche Bank at the bottom of the European benchmark, down almost eight percent.
The lender announced it would raise eight billion euros ($8.5 billion) to boost its capital position and has set new financial targets.
By contrast, Standard Life and Aberdeen Asset Management were at top of the regional index, up more than six percent and four percent, respectively.
Standard Life has agreed to a $13.5 billion merger with Aberdeen.
General Motors said it would sell its European operations to PSA Group, making the French company the second largest automaker in Europe. Shares of Peugeot Citroen were among the best performers, up by 2.7 percent.
Furthermore, British defense contractor Ultra Electronics jumped more than 6.4 percent after raising its dividend by four percent.
Meanwhile, in the U.S., the Dow Jones industrial average and broader S&P 500 were trading lower midday Monday as geopolitical tensions appeared to weigh on investor sentiment.
Elsewhere, the leaders of France, Germany, Italy and Spain are gathering in Versailles Monday as they prepare for a European summit amid rising political uncertainty across the bloc.
The euro moved lower against the dollar by about 0.3 percent on the news that the former prime minister of France, Alain Juppe, is not going to run for president.
In Greece, data showed the economy contracted 1.2 percent in the last quarter of 2016.
In Asia overnight, North Korea fired multiple missiles off its east coast, which flew about 1,000 km (620 miles), South Korea’s military said.
Japan said three missiles landed inside its exclusive economic zone and that it would not tolerate the hermit state’s provocative actions.
Source: CNBC
