European stocks are bouncing on Wednesday with all of the continent’s major bourses in positive territory during early trading.
Gains on Wednesday come despite a relatively weak session in the Asian markets, and ahead of a crucial meeting of OPEC members in Algeria later, when the world’s big oil producers could decide to freeze production, addressing one of the biggest issues in the oil markets right now.
Stocks right across Europe are performing strongly with all but a couple of indexes higher by more than 1% just after 8:30 a.m. BST (3:30 a.m. ET).
The strongest performer so far on the day is Italy’s FTSE MIB, up around 1.3%. This is driven by strong gains from the country’s banking sector, which has rebounded from a tough start to the week. Here’s how the MIB looks:
The weakest of the major indexes is Britain’s FTSE 100, despite being up more than 0.7%. Its performance on the day is being driven by strong gains from holiday provider TUI, which reported on Wednesday that it has seen strong growth in the number of Brits taking holidays this summer. As a result, shares are up more than 2.2% and are helping give the FTSE a leg up. Here’s the chart:
As Mike van Dulken of Accendo Markets notes in his morning email, the day’s gains “come after a largely negative session in Asia contrasts with a positive stateside finish, appetite for risk having moved on from the US Presidential debate and back focusing on the woes of Deutsche Bank and the Oil meeting Algiers. Sentiment flat thanks to oil off its lows, but expectations rather low that anything concrete will come of this week’s informal meeting and that we will have to wait for OPEC’s formal meeting November.”
There are fears in the markets that the risks surrounding Germany’s biggest lender, Deutsche Bank, may be beginning to crystallise following the announcement of a $14 billion fine from the US Department of Justice earlier in September. The bank faces billions in legal costs and settlements with US authorities over an investigation into sales of mortgage-backed securities, which would leave the bank seriously undercapitalised.
As a result, Deutsche’s stock dropped to a record low on Monday, falling below €10.50 per share for the first time in its history. Since then, however, it has rebounded a little, and during morning trading on Wednesday shares are up 3% to €10.87. Deutsche’s gain on Wednesday has been helped by confirmation that it has sold Abbey Life Assurance to Phoenix Group, something that the bank says will have “a net positive” impact on its capital position.
Here’s the chart of DB’s performance so far:
Business Insider Emails & Alerts
Site highlights each day to your inbox.