Markets Right Now: Banks lead a slump in United States stocks
Sep 27 2016 by Johnny Bowman
Traders walk by the post where Deutsche Bank is traded on the floor of the New York Stock Exchange, Monday, Sept. 26, 2016.
But can Deutsche Bank regain its footing in a negative interest rate environment with no lifeline from Germany's central bank?
At 10:55 a.m. ET (1455 GMT), the Dow Jones industrial average was down 103.14 points, or 0.56 percent, at 18,158.31. The Standard & Poor's 500 index fell 17 points, or 0.8 percent, to 2,147.
Deutsche's woes saw Europe's broader bank index drop 2.6% (and all european markets by 1.3%) - its worst day since the start of August. Stocks are coming off two weeks of solid gains, and the Nasdaq set all-time highs twice last week.
Pfizer fell 1.4 per cent after the drugmaker abandoned a plan to split into two.
The S&P financial index fell 1.5 percent, with JPMorgan's 2.19 percent decline and Bank of America Corp's 2.77 percent slide weighing most.
BERLIN (AP) - Deutsche Bank shares are down further after German Chancellor Angela Merkel gave no indication that her government might help the group with a USA demand for a $14 billion legal settlement. Its report, published on Friday, cited "government circles" as its source. Along with the bank's losses, stock markets also suffered over the concern over the capability of the bank to overcome the crisis. The stock is down 51% this year.
Deutsche Bank plunged as investors anxious about the financial health of Germany's largest bank. Citigroup and Morgan Stanley sank 2 percent.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.58 percent. While sales of new homes have risen over the past year, there simply aren't a lot of houses on the market. The KBW Bank index fell 1.64 percent, its steepest drop since July 5 in the wake of the Brexit vote. (BATS) in a deal valued at $3.2 billion. CBOE stock lost $2.90, or 4.1 percent, to $67.40.
Senate panel to scrutinize proposed Bayer-Monsanto merger
Regulators are expected to thoroughly review the merger with potentially a 50 percent chance the deal will pass clearance. As per the filing, DSP Merrill Lynch and Credit Suisse Securities Private Limited are the manager to the open offer.
At the same time, oil prices retreated after Iran played down expectations for a deal on oil production, calling the OPEC meeting on Wednesday "consultative" and dashing hopes that an agreement will be made.
ENERGY: Benchmark U.S. crude shed 6 cents to $45.87 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price global oils, declined 13 cents to $47.80 in London. Transocean 30 cents, or 3.3 percent, to $9.40 and Noble Energy added 80 cents, or 2.4 percent, to $33.82.
TENURE'S END: Casual clothing retailer Lands' End skidded after the departure of its CEO. That ended years of speculation. It is down 33 percent this year.
ARISE, ARRAY: Drug developer Array BioPharma surged $2.26, or 61.9 percent, to $5.91 after it reported good results for an experimental melanoma treatment in a clinical trial.
The dollar slid to 100.34 yen from 101.09 yen.
The sell-off in DB stock had plenty of company, as it affected other European banks, sending the Euro Stoxx bank index down 1.92%. Silver dipped 21 cents to $19.60 an ounce. It gained $1.45 the previous session to $47.93. Heating oil rose 4 cents, or 3 percent, to $1.45 a gallon.
OVERSEAS: The DAX in Germany dropped 2.2 percent and France's CAC 40 fell 1.8 percent. In Britain, the FTSE 100 was down 1.3 percent.
The Nikkei 225 index (http://www.marketwatch.com/story/asian-markets-drop-on-global-oil-worries-2016-09-25) fell 1.2% as the Japanese yen pushed higher against the USA dollar. South Korea's Kospi slipped 0.3 percent and Hong Kong's Hang Seng lost 1.7 percent.