European Markets Down as Deutsche Bank Pulls Financials Lower
Frankfurt (Oct 10) European markets were mixed Monday as investors digested last night's second Presidential debate and continued to count the cost of repairs in the region's banking sector.
The debate was said to be the most contentious ever witnessed, with Republican candidate Donald Trump saying he would push for a special prosecutor to investigate his rival, Hillary Clinton, whom he said would be "in jail" under his presidency. The GOP candidate himself remained under fire for a tape released by The Washington Post on Friday revealing lewd comments about women.
In London, the FTSE 100 was down 0.13% at 7,035.01.
In Frankfurt, the Dax was down 0.11% at 10,480.26 and the Cac 40 was down 0.15% at 4,443.36 in Paris.
Deutsche Bank (DB) were down sharply on Monday, falling more than 2%. Investors are growing concerned that an agreement with the Department of Justice over mortgage-backed securities misselling was not reached over the weekend.
The bank is facing a $14 billion settlement claim, which it has said it has no intention of paying.
This has pulled down banks across Europe as the world's top bankers sided with the International Monetary Fund calling for wide ranging reforms for European banks. Bankers from UBS and Goldman Sachs have said that lender in the eurozone need to thin down and clean up their balance rather than blaming their problems on negative interest rates.