Bank Stocks Lead Eurozone Markets Lower Following DOJ Settlement Request

Eurozone stock markets are heading south, led by a more than 1% decline in the Italian MIB index. Banks are under pressure led by Deutsche Banks as the U.S. Department of Justice called for a USD 14 billion settlement payment for miss-selling of mortgage backed securities during the U.S. housing bubble. The larger than expected figure is also weighing on bank stocks in the rest of Europe, although the FTSE 100 managed to come back from earlier lows and is currently posting a small rise, against a loss in the DAX in early afternoon trade.  Latest on Friday the U.S. will report CPI and Sentiment.

U.S. stock futures are also down, and the broad move higher on global stock markets Thursday has proved short lived, even as fears about a September Fed hike have abated somewhat. The Bank of Japan and Fed remain in focus, as they will have monetary policy decision next week. Japanese markets
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