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European stocks continue flat; Deutsche Bank shares up after DoJ settlement

European stocks

European markets continued to hover around the flat line Friday as trading desks began to thin out in a shortened trading day for some major bourses.

The FTSE100 ended 0.06 per cent higher as the U.K.’s market closed. This as the DAX30 moved 0.32 per cent down before Germany’s market shut while France’s CAC40 index was fractionally lower.

The pan-European Stoxx 600 continued flat with sectors mixed. Banking stocks slipped to negative territory having moved higher after a raft of overnight legal news.

Deutsche Bank was close to the top of the leaderboard, moving around 2.1 per cent higher, after its Friday pre-open announcement that it had agreed to pay $7.2 billion (£5.88 billion) to settle an investigation led by the U.S.’s Department of Justice into alleged mis-selling of mortgage securities (MBS).

This as Credit Suisse gave up gains to fall 0.9 per cent lower on Friday morning after revealing that it had reached a deal with U.S. authorities to settle claims for its role in mis-selling MBS. The Swiss lender was asked to drum up a total $5.7 billion (£4.66 billion). The Zurich-based bank said it would take a pre-tax charge of about $2 billion (£1.63 billion) to pay for the settlement.

Meantime, U.K. bank Barclays continued lower to 1.6 per cent on news it is being sued by federal prosecutors for allegedly fraudulent MBS issued during the frothiest peaks of the U.S. housing bubble.

Paul

The author Paul