Deutsche Bank shares slide 5% after announcing $8.5 billion capital hike

Deutsche Bank shares slide 5% after announcing $8.5 billion capital hike

Markets in Europe were lower Monday morning as investors contemplated a rate rise by the U.S. Federal Reserve and digested merger news.

The pan-European Stoxx 600 was 0.43 percent lower with basic resources stocks leading the losses on news of an expected slowing of growth in China.

Banking stocks were also down by about 0.6 percent in early trade, with shares of the German lender Deutsche Bank at the bottom of the European benchmark, down by 5 percent. According to Sky News, the bank is facing new legal actions over foreign currency trading. Meanwhile, the lender has announced it will raise 8 billion euros ($8.5 billion) to boost its capital position and has set new financial targets.

By contrast Standard Life and Aberdeen Asset Management reached the top of the regional benchmark, up by 7 percent and 5 percent respectively. Standard Life has agreed to a $13.5 billion merger with Aberdeen.

General Motors has also announced that it is to sell its European operations to the PSA Group, making it the second largest autos company in Europe. Shares of Peugeot Citroen were among the best performers, up by 4 percent.

Furthermore, Ultra Electronics jumped 8 percent in early trade after raising its dividend by 4 percent.

Meanwhile, the leaders of France, Germany, Italy and Spain are gathering in Versailles Monday as they prepare for a European summit amid rising political uncertainty across the bloc.

In Asia overnight, North Korea fired multiple missiles off its east coast, which flew about 1,000 km (620 miles), South Korea’s military said. Japan said three missiles landed inside its exclusive economic zone and that it would not tolerate the hermit state’s provocative actions.



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