Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Deutsche Bank rises as investors call concerns around lender "irrational"

Published 2023-03-27, 04:04 a/m
Updated 2023-03-27, 04:04 a/m
© Reuters.

By Scott Kanowsky 

Investing.com -- Shares in Deutsche Bank AG NA O.N. (ETR:DBKGn) are up Monday, rising to near the top of the regional Europe Stoxx 600, as the German lender rebounded from steep losses in the prior session.

Analysts backed Deutsche's strength despite a 9% drop on Friday that came after the cost of insuring its debt against default surged. Fears over the health of the broader financial services industry have been exacerbated as well following the failures of Silicon Valley Bank and Signature Bank and the forced takeover of Credit Suisse Group AG (SIX:CSGN) by rival UBS Group AG (SIX:UBSG).

But the market's concerns around Deutsche are "starting to be irrational," argued analysts at Kepler, who also maintained their buy rating of the stock. Analysts at Citi echoed the sentiment, adding that worries around Deutsche's exposure to U.S. commercial real estate loans, which have been strained by an uptick in borrowing costs and slipping property valuations, are "manageable."

On Friday, German chancellor Olaf Scholz responded to questions that Deutsche could see its own version of the turmoil surrounding Credit Suisse, saying the bank is "fundamentally modernized" and "very profitable."

This morning's gains at Deutsche helped lift other major European bank stocks that have faced heavy volatility in recent weeks, with German peer Commerzbank AG O.N. (ETR:CBKG) and Banco Santander (BME:SAN) in Spain both trading in the green. The Europe Stoxx Banks index, a collection of some of the region's biggest lenders, also moved up by more than 1.3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.