The US department of justice is charging Deutsche, Barclays and Credit Suisse billions over bond and mortgage-backed securities misseling scandals. The DoJ is has taken Barclays to court over the sale of residential mortgage-backed securities (RMBS) in the run-up to the banking crisis. While Barclays commented that it would fight the case, other banks are already reaching deals with the DoJ, with Deutsche bank agreeing to a $7.2B provisional deal and Credit Suisse reaching a $5.3B agreement.
In other related news, Italy has officially approved the bailout for Monte dei Paschi reassuring its depositors. Prime Minister Paolo Gentiloni, announced that the Italian government approved a decree to rescue the embattled lender.
European markets edged slightly higher in early trade on Friday given depleted trading desks ahead of the holiday weekend and as banking stocks advanced after a raft of overnight legal news from the sector. European stock indices opened flat to higher today with Germany’s DAX adding 0.1 percent at 11470.00, U.K.’s FTSE trading flat at 7060.50, France’s CAC 40 adding 0.2 percent at 4844.00 and the Euro Stoxx 50 adding 0.4 percent at 3278.50 as of 8:55 GMT.
Asian stocks extended their recent losses amid thin trading on Friday, during the last trading day ahead of Christmas. It should be noted that Wall Street stocks also fell for a second straight session overnight. While Chinese shares led losses, the Japanese market remained closed as Japan celebrates the Emperor’s birthday today. It should also be noted that a great number of regional markets will also remain closed on Monday since Christmas is celebrated on Sunday this year. In today’s Asian Market’s China A50 lost 0.6 percent to close at 9929.06, DJ Shanghai lose 0.9 percent to end the day at 423.09, Hang Seng dipped 0.3 percent to close at 21568.00 while India’s Nifty 50 added 0.2 percent to last trade at 7995.55 as of 8:51 GMT.