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Deutsche Bank's rise limits decline in European equities

Deutsche Bank's rise limits decline in European equities

European stocks drifted lower on Monday, with most major sectors hovering in the red areas, ahead of a busy week, yet a rally in Deutsche Bank shares limited the losses.

Euro Stoxx 600 index fell by about 0.2 percent, registering 389.5 points, and the German DAX saw a 0.5 percent loss to 12,568.5 points.

The British FTSE 100 index fell by 0.2 percent to 7,540.2, while the French CAC index slipped by more than 0.2 percent to 5,581.3.

However, some of the losses were compensated after a 2.7 percent rise in Deutsche Bank shares after announcing to cut of 18,000 jobs and making a major overhaul.

Deutsche Bank stocks reached their highest level since early May after announcing a restructuring plan that will cost the German lender $8.3 billion.

Financial and defense shares pulled indices lower, extending losses incurred last session after strong US job data had reduced investors bets of a 50-basis-point rate cut by the Fed in July.  

Since June, most of the global stocks gains have been driven by the expectation that major central banks will tighten monetary policy to address the sluggish growth, with the devastating trade war between the United States and China causing losses.

Data released today showed that German industrial production plunged 0.3 percent in May, coming below forecasts, while eurozone Sentix Investor Confidence index was not better off as it recorded an actual reading of -5.8.

The euro resumed its drop for a second straight session at $1.1214 after hitting a bottom at $1.1207 on Friday, the lowest since June 19.

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