The German bank is now down another 3%, and is threatening to drop under €10 for the first time in around 30 years. This has sparked another round of losses in the European banking sector, with Barclays, HSBC and Societe Generale all seeing notable declines. Royal Bank of Scotland actually surpassed Deutsche Bank’s morning drop, percentage-wise at least, with investors fearful that the same kind of fine could hit RBS when its settlement with the US Department of Justice is finally revealed.
Elsewhere Brent Crude has dipped by 0.8%, something that has helped drag down the likes of BP and Shell by 0.8% and 1% respectively. Combine that with the banking slump and it’s a surprise that the FTSE is only down by 0.3% – perhaps some of the goodwill generated by last night’s Clinton debate ‘win’ is tempering the negative tone that has crept in this morning.
Looking ahead to this afternoon and it seems that the Dow Jones is just about keeping the post-debate relief alive, with the futures pointing to an admittedly meagre 25 point rise after the bell. Still to come is the Markit flash services PMI (forecast at 51.1 against 51.0 last month) alongside the CB consumer confidence reading (expected at 98.6 compared to 101.1 in August).