Stocks sent tumbling amid worldwide wobble over struggling Deutsche Bank

Fresh fears about Deutsche Bank have seen its shares tumble to a 30-year low and dragged stock markets across Europe into the red. The German lender opened 8% lower in Frankfurt as its shares dipped below €10 for the first time in decades. Worries about the lender spread to other banking stocks. The FTSE 100 Index in London opened more than 100 points lower. German and French markets also fell before they pared back most of the losses. Boss John Cryan wrote to the bank’s 100,000-strong workforce to reasssure them: “We are and remain a strong Deutsche Bank.”

Of course some of our customers are asking what’s going on at Deutsche Bank at the moment. We’re telling them that we’re doing better than it may appear from the outside.

Fabrizio Camelli, head of Deutsche Bank’s wealth management business

Fears over Deutsche deepened after it emerged that it was facing a US fine of up to $14bn over its conduct during the financial crisis. Earlier this week, the lender had sunk to a record low on fears over its funding and the German government had been forced to deny it was preparing a rescue plan. But in the last couple of days the shares had stabilised. On Thursday night, it was reported that hedge fund clients had withdrawn excess cash and adjusted positions linked to Deutsche, sending New York-listed shares down 7%. The bank said in a statement that its trading clients remained largely supportive with the “vast majority” understanding that it had a “stable financial position”.

Contagion fears that were denting financial peers may have eased but of course remain ready to pounce on the next negative DBK soundbite.

Analyst Mike Van Dulken, of Accendo Markets