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Deutsche Bank shares choppy with no DOJ settlement deal in sight

The Deutsche Bank saga continues

Shares of Deutsche Bank seesawed in the European session on Tuesday, with bosses at the embattled lender still yet to reach a settlement with the U.S. Department of Justice.

Speculation was rife over the weekend that the bank was aiming to lower the $14 billion penalty which relates to a number of investigations related to mortgage securities. Shares of the firm rallied on Friday afternoon on rumors of a deal.

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Following a national holiday on Monday, shares rose higher at the open on the German DAX but soon pared gains. By the close of European markets, they had risen to clock gains of nearly 1.5 percent.

"With no updates so far on the case, expect the stock to remain on a roller coaster," FXTM Chief Market Strategist Hussein Sayed said in a note on Tuesday morning.

HSBC cut its price target on the German lender from 14 euros to 12 euros in a research note published Tuesday. But earlier it had also got a strong vote of confidence Monday from another major rival. JPMorgan Chase CEO Jamie Dimon told CNBC that he believed the German lender was going to be fine.

"There is no reason that Deutsche Bank shouldn't get over its problems," he said.

The perception is that Deutsche Bank needs to raise capital following the proposed settlement from the U.S. Justice Department (DOJ. The bank has repeatedly defended itself over recent weeks, however, telling CNBC that there is "no reason to worry" and that the bank had a "comfortable cushion."

A banners of Deutsche Bank is pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 30, 2016.