Europe Stocks Retreat from Record Highs, Deutsche Bank Drags


STOXX 600 eyes fourth month of gains

Deutsche Bank slides on report of Fed warning

Trading volumes light as US, UK markets closed Adds comments, updates prices

May 31 Reuters European stocks slipped from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery put the benchmark index on course for its fourth month of gains.

The panEuropean STOXX 600 index was down 0.1 in morning trade, with shares in Frankfurt falling 0.3 and Paris dipping 0.1.

UK and US markets are closed for a holiday, keeping trading volumes muted across the board.

Among the top drags was Deutsche Bank, down 1.8 after the Wall Street Journal reported that the U.S. Federal Reserve told the German lender it was failing to address persistent shortcomings in its antimoneylaundering controls.

Italian insurer Cattolica surged 12.9 after bigger rival Assicurazioni Generali said it would launch a 1.17 billion euros 1.4 billion buyout offer for the company.

Despite lingering worries about rising inflation, the STOXX 600 was on course to post a 2.6 rise in May as economies gradually reopened after lockdowns and central banks reiterated support to aid the recovery.

Dovish comments from European Central Bank ECB policymakers, including from President Christine Lagarde, who said it was too early to discuss slowing its pandemic emergency bond purchases PEPP, helped support sentiment last week.

All eyes will be on euro zone inflation readings…


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