(ADVISORY- Follow European and UK stock markets in real time on
the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)
* Deutsche Bank shares fall, no progress on DoJ situation
* Air France KLM, Lufthansa and easyJet shares fall
* William Hill rises on Amaya merger talks
By Sudip Kar-Gupta
LONDON, Oct 10 European stock markets slipped
lower on Monday as shares in Deutsche Bank fell,
weighing on the broader European banking sector, while some
major airline shares also declined.
The pan-European STOXX 600 index was down by 0.3
percent, with the index down by around 7 percent since the start
Deutsche Bank shares fell 2.8 percent, with traders
expressing disappointment at a lack of progress in the company's
battle against a demand by U.S. authorities for up to $14
billion over misselling allegations. Deutsche Bank shares remain
down by around 50 percent so far in 2016.
The pan-European STOXX Europe 600 bank index also
fell 1.1 percent.
Deutsche Bank's Chief Executive John Cryan failed to reach a
deal with the U.S. Department of Justice (DoJ) at the weekend
over the misselling of mortgage-backed securities.
"They had a bit of a bounce up last week, but I would still
steer clear of Deutsche Bank. They were never going to sort out
the U.S. issues that quickly, and whatever happens, I still
think they will need to have a rights issue," said Terry
Torrison, managing director at Monaco-based McLaren Securities.
Airline shares also fell.
Air France KLM weakened by 1.1 percent after
traders said its September traffic figures was a bit weaker than
expected. That weighed on Lufthansa, whose shares fell
EasyJet, which issued a profit warning last week,
also fell 3.4 percent after SocGen cut its rating on the stock
to "sell" from "hold".
However, shares in William Hill climbed 4.5 percent
after the British gambling company said it was in merger talks
with Canadian online peer Amaya.
Some traders said equities remained their favoured asset
class, since record low interest rates in the euro zone and
Britain had hit returns on bonds and cash, driving investors to
the better returns on offer from the stock market.
"My view remains to buy the dip with interest rates
remaining at these low levels," said Lex Van Dam, hedge fund
manager at Hampstead Capital LLP.
(Editing by Janet Lawrence)