European Stocks Drift Lower; Deutsche Bank Falls on Rights Issue Details

Frankfurt (Mar 20)  European stocks drifted lower Monday following a holiday-thinned trading session in Asia as investors prepare for key inflation and private sector activity data later in the week.

The region-wide Stoxx 600 Europe Index was marked 0.23% lower by 08:30 GMT while the FTSE 100 benchmark in London fell 0.27% to be quoted at 7,404.61 points. 

Deutsche Bank AG (DB)  shares were an early mover of note after Germany's largest lender said it will launch its €8 billion ($8.6 billion) capital raising strategy Tuesday with a rights issue priced at a 35% discount to last week's close.

Deutsche will sell 687.5 million shares at €11.75 each, the bank said Sunday, compared to its Friday closing price of €17.86 with a ratio of 2:1 and subscription period that will run through April 6. The launch comes as Germany's largest lender published it 2016 annual report.

Deutsche Bank shares fell 1.1% in early Frankfurt trading to change hands at €17.63 each by 08:15 GMT. The stock has fallen 6.7% since the rights issue was confirmed on Sunday March 6, compared to a 1.22% gains for the Stoxx Europe 600 Banking Index.

Europe's trading calendar this week looks set to be dominated by fresh PMI data for the core of the Eurozone from IHS/Markit later in the week as well as U.K. inflation (Tuesday) and retail sales (Thursday).

Overnight trading in Asia was relatively quite, with the markets in Japan closed for Vernal Equinox Day celebrations, the region-wide MSCI Asia ex-Japan index added 0.28% by 07:00 GMT.

Source: TheStreet