Deutsche Bank supports European shares ahead of G20 meeting, US-China talks

The Deutsche Bank headquarters in Frankfurt October 28, 2015. — Reuters pic
The Deutsche Bank headquarters in Frankfurt October 28, 2015. — Reuters pic

BERLIN, June 28 — Germany’s top lender Deutsche Bank propped up European stocks today, but investors were generally cautious ahead of a pivotal G20 meeting where progress on US-China trade talks will be closely monitored.

US President Donald Trump is set to hold a high-profile meeting with Chinese President Xi Jinping tomorrow, and markets are nervous over whether the outcome of that meeting will produce progress in ending the year-long trade war amid signs of rising risks to global growth.

The pan-European STOXX 600 index was flat by 0706 GMT, and Frankfurt’s DAX rose 0.3 per cent.

Deutsche Bank rose 3.5 per cent after it passed an annual health check by the US Federal Reserve, clearing a second hurdle at a critical time for the German lender in tests administered by the central bank that measure banks’ ability to weather a major economic downturn.

Madame Tussauds owner Merlin Entertainments jumped 14.1 per cent and was the biggest gainer on the main index, after the company said it would be acquired by the investment vehicle of Lego’s founding family and private equity firm Blackstone Group LP in a deal valuing the company and its debt at nearly £6 billion pounds (RM31.4 billion). — Reuters