European stocks seen lower as Deutsche Bank restarts trading; Fed, Brexit in focus


European stocks are expected to open slightly lower on Tuesday with Deutsche Bank back in focus for its first trading day of the week following a public holiday in Germany.

The FTSE 100 is seen down 9 points at 6,974, the German DAX is called 11 points lower at 10,500, while the French CAC is expected to fall 3 points at the open to 4,450.

Deutsche Bank’s share price went on a roller coaster ride last week on the news that it would have to pay a $14 billion (£10.92 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 (£4.21 billion). Talks however are ongoing according to the Wall Street Journal 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.

Traders are also focusing on Britain’s path to Brexit after U.K. Prime Minister Theresa May announced over the weekend that Article 50 would be triggered by the end of the first quarter of 2017.

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The author Paul