Shares have rallied more than 20% in less than one week, but on Thursday that rally stopped, with shares ending at €12.07, the exact same rate at which they started the day.
Deutsche Bank's shares had been hit in the past few weeks after reports that the US Department of Justice is planning to hit the bank with a $14 billion (£11 billion , €12.4 billion) fine for misselling mortgage-backed securities in the run-up to the financial crisis.
That fine is almost as big as the bank's market value and led to fears late last week that Germany may have to bail out the bank, something Berlin denied.
However, the bank has bounced back in the markets, with shares gaining on Friday last week, Tuesday, and Wednesday. In early trade on Thursday, the company's stock hit €12.38, its highest level since September 16. That extended the near 3% rise shares saw in trade on Wednesday, and meant that shares have gained more than 22% since hitting a more than 30-year low on September 30.
The main driver of Thursday's early rally appeared to be a report from Reuters late on Wednesday that the German government is pursuing talks with US authorities to help the bank settle its enormous fine as quickly as possible. Late in the morning it pared those gains, before climbing again on the news of the new job cuts. However, as the afternoon progressed, the bank's stock fell back to its opening price.
Here's the chart show Deutsche's stock has performed so far:
By Will Martin.
Full story at Yahoo News.
No comments:
Post a Comment