CEO reassures Deutsche Bank is ‘rock-solid’ as shares sink

Norwegian mobile software company Opera also jumped 41.2 percent after a group of Chinese firms made a cash offer for the company, valuing it at 10.5 billion crowns, or $1.23 billion.

Last year’s sure thing in credit markets is quickly becoming this year’s nightmare for bond investors.

The declining financial condition is not the only problem of the bank.

“I have no concerns about Deutsche Bank”, he said.

Then there are the other ongoing regulatory probes into Deutsche’s business with mortgage-backed securities and dubious trades that involved one of the bank’s branches in Russian Federation.

He added: “Of course, there are risks of decreasing growth in the eurozone but all the recent indications show that the recovery is here”. “Given they have 54 billion euros in bonds maturing over the next two years and much of their existing funds tied up as regularity capital, things don’t look hugely sustainable”. Athens fell almost five percent at one point. Meanwhile, yields on bonds of Europe’s most- indebted countries rose.

Wall Street did not escape the gloom either.

Japan’s Nikkei 225 index was the feature faller, ending 5.4 percent lower.

Still, such reassurances did little to reverse a selloff in stock and debt markets.

The public however doesn’t seem to buying their sunny outlook, with Deutsche Bank shares trading down $0.62 (-3.99%) at $14.92, and their fellow German lender Commerzbank ending down 0.29 (-4.35%) on the European markets.

Yields on benchmark 10-year Treasury notes, known for their relative safety, extended Monday’s declines to hit 1.682 percent, their lowest in a year.

USA crude prices fell after a meeting between Saudi Arabia and Venezuela failed to reassure investors of measures to bolster sagging prices.

The bank also confirmed that in 2017, it will have €4.3 billion in payment capacity before any impact from its 2016 earnings results. Please see our terms of service for more information.

North American futures point to a lower open. The Nasdaq Composite Index neared a bear market as some of the biggest tech stocks dropped, bringing the gauge’s decline from a July record to 18 percent.

European equities fell to a 16-month low on Monday, extending the previous week’s hefty losses, with cyclical sectors such as banking and automobiles bearing the brunt of a broader sell-off.

Back in January, he said it was concerns over China and the slump in the oil price that was behind the slide. What that means is investors are willing to pay for the right to lend money to Japan over that time period.

Following suit, the DAX was down 1.1 percent, while the FTSE was 0.75 percent lower.

Fears of a strengthening currency were largely behind the earlier stock market retreat in Tokyo.

Laith Khalaf, senior analyst at Hargreaves Lansdown stockbrokers, said “The Footsie is now wallowing at the level it stood at in 2012, with the usual suspects in the mining sector dragging the index down, after they survived Monday’s sell-off unscathed”. Gold was on track for its longest rally since 2011 as the yen extended gains to surpass 115 per dollar.

The yen strengthened past 115 per dollar for the first time in more than a year and climbed against all its major peers.

Not all financial assets are suffering during this tumultuous start to 2016. A rout in high-valued software and Internet companies continued Monday with Facebook Inc. falling 4.2 percent after its steepest retreat in more than a year. The swaps, which typically fall as investor confidence improves and rise as it deteriorates, pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. It’s down about $8 at $1,190. Equity benchmarks in Germany, France and Spain dropped at least 3.2 percent.

Deutsche Bank had begun taking on complicated positions in the high-risk, high-reward instruments to cover enormous litigation costs incurred amid accusations of helping clients avoid taxes. Greece’s ASE Index sank 7.9 percent to the lowest since 1990 as banks tumbled. The index last closed higher in September 2012, CMA data indicate.