European Stocks Rally On Relief Over Reported Deutsche Bank Settlement

(RTTNews) - European stocks rallied Friday, erasing early losses after AFP reported troubled lender Deutsche Bank may be near a $5.4 billion settlement with the U.S. Department of Justice.

Markets were expecting far harsher terms of a settlement, perhaps as high as $14 billion.

Deutsche Bank shares jumped 6.4 percent.

Rival Commerzbank was down 1.2 percent, but well off the session lows, a day after suspending its dividend for the first time and announcing 9,600 jobs over the next four years. The pan-European Stoxx Europe 600 index was up 0.11 percent after having touched its lowest level since August earlier in the session. Germany's DAX rose 1 percent.

U.K. shares lagged amid concerns about the financial health of Deutsche Bank and allegations that Wells Fargo had violated the Servicemembers Civil Relief Act, raised concerns over the systematic risk in the broader financial sector.

Banco Santander lowered its profitability targets for 2018.

Airbus Group added one percent in Paris after it unveiled a new restructuring plan that involves merging with its planemaking unit.

A slew of economic reports on U.K. consumer confidence, house prices, GDP, German retail sales, Eurozone inflation and unemployment painted a mixed picture of regional economies.