EUROPE MARKETS: Deutsche Bank Shares Slide As Europe Stocks Drift Before ECB Meeting
By Steve Goldstein, MarketWatch
Deutsche Bank shares tumbled Wednesday in an otherwise listless
European stock market which paused ahead of a critical European
Central Bank decision.
The Stoxx Europe 600 dropped 0.1% to 391.23.
The U.K. FTSE 100 fell 1% to 7,480.84, hurt after a brokerage
downgrade of heavyweight miners Rio Tinto (RIO.LN) , BHP
Group(BHP.LN) and Anglo American (AAL.LN) . See London Markets
The German DAX rose 0.4% to 12,538.73 and the French CAC 40 lost 0.4% to 5,595.39.
What's moving markets
The mood in markets was hurt after the U.S. Justice Department
announced late Tuesday it was probing the U.S. technology giants
that have carried stock markets higher.
Closer to home, purchasing managers indexes in Europe flagged
rough economic conditions, with flash German manufacturing PMI
sliding to an 84-month low of 43.1 in July. Eurozone manufacturing
PMI fell to an 75-month low. Any reading below 50 indicates
Against that weak backdrop, the ECB on Thursday is expected to
lay the groundwork for an interest-rate cut in September.
Related: It's the ECB's turn to take a step toward further
easing when it meets Thursday
Deutsche Bank shares (DBK.XE) (DBK.XE) dropped over 2% to
EUR6.96, moving the stumbling German lender near its 50-day moving
average of EUR6.54. Deutsche Bank reported a EUR3.15 billion loss
in the second quarter, after taking a 3.4 billion restructuring
charge, which was larger than it previously flagged. Excluding the
charge, it would've reported a lower-than-expected EUR231 million
Deutsche Bank shares have lost 35% over the last 12 months.
Battered U.K. broadcaster ITV (ITV.LN) enjoyed some relief, with
the stock jumping nearly 7%. The country's largest commercial
broadcaster reported a 16% drop in first-half pretax profit and
announced new cost savings. The stock is still down 34% over the
last 12 months.
Shares of chip equipment maker ASM International (ASM.AE) leapt
5%, with the company reporting a doubling of second-quarter profit
and new orders and a EUR100 million buyback program.
(END) Dow Jones Newswires
July 24, 2019 07:17 ET (11:17 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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