Deutsche Bank worries weighing on European equity markets

Deutsche Bank worries continued weighing on European markets, with most major indices witnessing a steep fall during early trade on Friday. 

A sharp slide in the shares of Deutsche Bank AG triggered losses across the financial sector as markets reacted to the reports suggesting that some of the biggest clients, which included several big hedge funds, have been pulling funds out of Deutsche Bank.

The stock, however, has recovered from lows, bringing some stability in the broader indices. At the time of writing German DAX was off session low but remained in negative territory with a cut of around 1.5% while the broader, Stoxx Europe 600 index was down over 1.0%.

Carol Harmer, Founder at charmertradingacademy.com, notes, "A break below here will send another bearish signal to the market and we would then be looking at the 10160 initially, with greater potential to try for the 10070....Now we know this was excellent resistance in the way up...likewise it will act as good support on the way down...Now if you want confirmation of a break lower you can wait util we have broken small trendline support at 10200....."