London - Caution rippled through markets as Deutsche Bank pulled down European shares, metals slumped on Chinese growth prospects and the French presidential race continued to roil the euro.
The Stoxx Europe 600 index was dragged down by miners and banks as Deutsche Bank announced it was reversing course with an overhaul to raise capital. The euro erased earlier gains and German bonds rose after former prime minister Alain Juppe said he won’t step in to replace Francois Fillon on the Republican ticket in France’s frenetic presidential election.
Markets appear to be coming off recent peaks as investors price in a near-certain March US interest rate increase by the Federal Reserve. Chinese Premier Li Keqiang warned of larger challenges ahead during his work report to the annual National People’s Congress gathering in Beijing. In Europe, the agenda is being set by politics, according to Pictet Asset Management.