European markets opened sharply down on Monday following steep losses in Asia. Banks were recently the big losers across the continent's benchmark indices.
Deutsche Bank (DB) - Get Report shares fell more than 5% this morning after it was reported that German Chancellor Angela Merkel would not give the beleaguered bank state aid to help with looming legal fines. The shares were recently at €10.76, which a new low for the bank. Its market cap now sits at €14.7 billion ($16.7 billion), only slightly more than the Department of Justice's suggested fine of $14 billion for misselling mortgage-backed securities ahead of the financial crisis. Deutsche Bank said it has no intention of paying this amount.
Oil prices were up slightly this morning after losing 4% on Friday as OPEC's informal meeting in Algeria gets underway. Saudi Arabia on Friday signaled that no formal agreement to cut production would be reached at the meeting. But reports over the weekend suggested that the Algerian energy minister said Saudi Arabia had offered to cut January output.
West Texas Intermediate was recently up 0.52% at $44.71 and Brent Crude was up 0.46% at $46.10 a barrel.
Futures pointed to a lower open for the U.S. markets, with Dow Jones Industrial Average mini futures down 0.30% and S&P 500 mini futures losing 0.27%.
In London, the FTSE 100, was down 1.22% at 6,825.33.
Three-quarters of CEOs said they would consider moving their headquarters or operations outside the U.K. due to the Brexit vote, a survey by KPMG found.
The survey of 100 business leaders found that 76% are considering some form of relocation. On the upside, 73% of the respondents said they were confident their companies would grow in the next year.
Supermarkets Tesco (TSCDY) and Sainsbury's (JSAIY) were recently down 1.97% and 1.73% respectively after low-cost competitor Aldi announced plans to improve its U.K. stores. The German supermarket chain, which is putting pressure on the U.K. big four supermarkets - Asda, Morrison (MRWSY) , Sainsbury's and Tesco - said today it would spend £300 million ($390 million) over the next three years to improve stores. Aldi announced that sales in its U.K. division were £7.7 billion in 2015.
Tesco was also under pressure after it was reported over the weekend that its pension fund had a deficit of almost £5 billion. It is one of the biggest private pension funds in the U.K.
Among other European lenders to join Deutsche Bank in declining, Lloyds Banking Group (LYG) - Get Report lost 2.30% in morning trading after Goldman Sachs downgraded the bank to sell from neutral and cut its price target by 6% to 50 pence.
Commerzbank (CRZBY) was recently down 2.32% in Frankfurt.
The Dax had recently lost 1.50% to 10,467.31 in Frankfurt and in Paris, the Cac 40 was down 1.73% to 4,410.93.
German chemical company Lanxess gained this morning after it announced a $2.7 billion bid to buy Chemtura (CHMT) . The German company offered $33.50 per share for the Philadelphia-based plastic additives maker. The offer represents an 18.9% premium over Chemtura's Friday closing price of $28.18.
Lanxess CEO Matthias Zachert said in a statement, "With this acquisition, we are forming a major global player in the field of additives and are significantly strengthening our already profitable portfolio."
In Tokyo, the Nikkei lost 1.25% to 16.544.56 and the Topix was down 1.02% to 1,335.84.
In Hong Kong, the Hang Seng was down 1.62% to 23,303.27 and on mainland China, the CSI 300 lost 1.69% to 3,220.28.