International Markets Report
European stocks advanced as investors speculated that the recent selloff was overdone, while Deutsche Bank AG headed for its best day in more than two weeks.
Germany’s biggest bank rose 2.2 percent after agreeing to sell its U.K. insurance unit Abbey Life Assurance Co. to Phoenix Group Holdings for 935 million pounds ($1.2 billion) and Chief Executive Officer John Cryan ruled out a capital increase.
The Stoxx Europe 600 Index added 0.7 percent to 342.47 at 11:07 a.m. in London, after earlier rising as much as 1.2 percent. The equity benchmark is on course to end the month down 0.3 percent after concern over lenders’ capital buffers sparked a selloff that dragged it to its worst day since July on Monday, offsetting optimism that central banks will maintain loose monetary policies.
Germany’s DAX Index jumped 0.9 percent, snapping a three-day losing streak, with Linde AG leading gains after Sanford C. Bernstein & Co. said Praxair Inc. Chief Executive Officer Steve Angel described the industrial-gases company as a “complimentary fit.”
Deutsche Bank was among the best-performing European lenders as investors focused on Cryan’s comments amid conflicting reports about possible separate contingency plans in case it needs additional capital. The shares tumbled to a record low this week amid concern about its capital levels after the U.S. Justice Department requested $14 billion to settle a probe into residential mortgage-backed securities.
Asian stocks fell, pushed down by declines in Japanese shares and a weaker oil price as hopes of an output cut fizzled. The MSCI Asia Pacific Index declined 0.9 percent to 140.66 as of 1:36 p.m. in Tokyo. The Topix index dropped 1.7 percent, the most in two-anda-half weeks, as more than half the companies on the benchmark traded without the right to the next dividend, a biannual event in Japan that typically sends the market lower to reflect the effect of the payout on companies’ assets.