Europe shares close lower; Deutsche Bank hits fresh record low
European stocks closed slightly lower on Tuesday, as energy stocks sagged and Deutsche Bank shares hit a fresh record low.
The pan-European Euro Stoxx 600 Index inched down to end around 0.1 percent lower, with autos and oil companies the major underperformers.
The U.K.'s FTSE 100 and French CAC ended provisionally lower by 0.3 percent, with the German DAX down 0.5 percent.
European markets
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8,420.26 | -18.39 | -0.22% |
| .GDAXI | DAX | 18,704.42 | -34.39 | -0.18% |
| .FCHI | CAC 40 Index | 8,167.50 | -20.99 | -0.26% |
| .FTMIB | FTSE MIB | 35,398.82 | -11.31 | -0.03% |
| .IBEX | IBEX 35 Idx | 11,327.70 | +28.40 | +0.25% |
Stocks had opened higher, with investors buoyed by the first televised debate between U.S. presidential nominees Hillary Clinton and Donald Trump on Monday night. Clinton appeared to have edged out her Republican opponent based on analysts' take on the initial market reaction.
However, the excitement faded, with U.S. stocks opening almost flat on Tuesday, before resuming gains.
By mid-morning in Europe, however, sentiment towards Deutsche Bank had dragged the market lower. This came amid capital concerns after the U.S. Justice Department suggested the bank pay $14 billion to settle investigations related to mortgage securities.
Deutsche Bank shares pared some losses to close around 0.4 percent higher on Tuesday, having reached a new low of 10.20 euros ($11.43) earlier in the session.
Volkswagen shares fell as much as 4 percent after a Bloomberg report said the U.S. Department of Justice was calculating what criminal fine it could levy on the carmaker. The stock pared losses to close 2.6 percent down on the day.
Elsewhere, oil markets were in focus as major crude-producing countries met at the International Energy Forum in Algeria, amid speculation of a possible production freeze deal to support prices.
Crude oil futures were over 3 percent lower on the day when European stock markets closed.
The downturn in crude prices impacted European energy stocks, with London-listed Tullow Oil closing down around 3.3 percent.
In other news, Commerzbank shares closed around 2.9 percent lower after media reports suggesting Germany's second-biggest lender might cut around 9,000 jobs over the coming years.
Shares of French telecoms group Orange closed around 1.7 percent higher after an upgrade from Credit Suisse.