Deutsche Bank Settlement Talk Drives Markets Higher – Long Positions Suggested on SP500
U.S stocks rebounded on Friday, wiping out weekly losses as the banking sector led gains. U.S.-listed shares of Deutsche Bank soared more than 13% in the last session of September, after Agence France-Presse reported that the Germany’s biggest lender is nearing a $5.4 billion settlement with the U.S. Department of Justice in its sub-prime lending related probe.
Earlier this month, the DOJ claimed $14 billion to settle an investigation tied to residential mortgage-backed securities. If the deal is reached, Deutsche Bank AG will save nearly two thirds of the penalty amount that was initially claimed by the DOJ.
Banks topped gainers today, with the banking sector up 1.45% in trading thus far. Among 11 sectors making up the SP500 index, only Real Estate and Utilities traded lower.
Buy Stop at 2169.00, Stop loss at 2162.00, Take profit at 2180.00