Deutsche Bank's rally is gaining steam
Shares in Germany's biggest bank, Deutsche Bank are continuing to rally on Tuesday, extending gains into a second day, and fighting back against the huge losses seen in recent weeks.
Around 8:50 a.m. BST (3:50 a.m. ET) Deutsche's stock is trading up by around 1% from Tuesday's close at €11.86 in Frankfurt. This is marginally lower than the highs reached on Tuesday morning, when DB hit a three-week high of around €11.98.
Here is a look at how shares are performing so far on the day:
Investing.com
Deutsche Bank's shares have been in a world of hurt over 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 that Germany may have to bail out the bank, something Berlin denied.
Fears were exacerbated on Friday by reports that a handful of hedge funds had reduced business with the bank to limit exposure to any upset. However, a reassuring letter from CEO John Cryan, as well as reports from Agence France Press that the bank and the DoJ agreed a settlement of roughly $5.4 billion, less than half the initial fine, bolstered the stock's price. As a result, shares rode a rollercoaster on the day, opening down by more than 8% before closing up by more than 8%.
While Deutsche shares did not trade on Monday because of the Reunification Day holiday in Germany, they popped on their return on Tuesday, and have continued to gain on Wednesday, suggesting that a tiny bit of confidence in the bank may be returning. There is also a clear possibility however that investors simply see DB's shares as incredibly cheap and are just picking up a bargain.
Deutsche's continuing rally bucks the trend in the wider markets on Wednesday, with all of Europe's major share indexes trading in negative territory, slipping off the back of news on Tuesday night that the ECB may be considering talking about tapering its quantitative easing programme before its eventually close at the end of March next year.
As a result, stocks across the continent are subdued. Here is the scoreboard:
Investing.com
Elsewhere, sterling has continued its slide on Wednesday extending its disastrous run against the dollar and euro to a third day, setting new multiyear lows against both.
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