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European shares weighed down by Deutsche Bank but M&A gives support
March 6, 2017 / 8:25 AM / 9 months ago

European shares weighed down by Deutsche Bank but M&A gives support

MILAN, March 6 (Reuters) - European shares pulled back in early trading on Monday with bank stocks led lower by a slump in Deutsche Bank shares after the German heavyweight lender unveiled a 8 billion euro cash call.

Losses however were limited by fresh deal making activity in the auto and asset management sectors. By 0818 GMT, the pan-European STOXX 600 was down 0.5 percent.

Deutsche Bank fell 5.8 percent, making the stock the biggest drag to the STOXX and pulling the European banking index down 1 percent. Deutsche Bank, which also announced plans to list its asset management arm and overhaul its business structure, will start the rights issue on March 21.

Europe’s auto sector index rose 0.1 percent, led higher by a 4 percent surge in PSA Group. The French carmaker agreed to buy Opel from General Motors in a deal valuing the business at 2.2 billion euros.

Asset managers Aberdeen and Standard Life climbed more than 6 percent after setting terms of their tie-up. (Reporting by Danilo Masoni)

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