European stocks higher; Deutsche Bank in focus; Pound hits 31-year low on Brexit fears

by Jonathan Adams
European stocks

European stocks were higher in morning trade on Tuesday with Deutsche Bank back in focus for its first trading day of the week following a public holiday in Germany.

The pan-European STOXX 600 was up around 0.56 percent.

Deutsche Bank’s share price went on a roller-coaster ride last week on the news that it would have to pay $14 billion (£10.96 billion) to settle with the U.S. Department of Justice. But a report on Friday by AFP suggested this could be reduced to $5.4 billion (£4.23 billion). However, according to Wall Street Journal, talks are going on and no settlement has been reached.

Analysts still expect the bank will need to raise fresh capital to deal with any penalty, which is worrying investors.

HSBC cut its price target for Deutsche Bank but shares in the German lender were still slightly higher in opening trade.

Apart, ABB said it was not selling or spinning off its Power Grids business on Tuesday and announced a $3 billion (£2.35 billion) share buyback scheme from 2017-2019. Shares of ABB were flat.

French luxury group LVMH was trading higher after it said it is buying an 80 percent stake in German high-tech luggage maker Rimowa for 640 million Euros (£560.68 million).

Meanwhile, Vivendi shares were higher after Deutsche Bank raised its target price for the stock.

This article is for information purposes only.
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