Deutsche Bank sinks to all-time low as rates drop

Friday, 31. May 2019 09:18

Investors showed increased fears on Friday for the sustainability of Deutsche Bank AG, sending its shares 2% lower to €6.069, a record low, at 9:01 am CET. The embattled lender has been sliding together with interest rates, which are largely determined according to movements in yields on German government debt. The shift has accelerated parallel to a string of factors apart from the financial giant's pursuit of funds to cover yet another planned restructuring.

Stocks nosedived today after the United States escalated the dispute over illegal immigration by announcing tariffs on goods from Mexico. The administration in Washington is already in a trade war with China, while tensions with Iran and North Korea have been rising. Furthermore, there is risk for the future of the Eurozone amid Italy's renewed budget row with the European Union. Brexit uncertainties are impacting the bloc's economy together with low inflation in the monetary union.

The yield on Germany's benchmark ten-year Bund fell 2.6 points to a negative 0.197%, the weakest mark since the record low was set on July 6, 2016, at 0.205% under zero. However, in some markets the level has already been touched.

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