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Deutsche Bank might have little time to stay Euro Stoxx 50
Selloff of Deutsche Bank AG shares that put them to the record low level question its 20-year membership in Euro Stoxx 50 Index, Bloomberg reports. The largest bank in Germany already lost 40% of its value this year after it showed losses three years in a row.
Photo © Sabine Felidae, CC0 1.0
Selloff of Deutsche Bank AG shares that put them to the record low level question its 20-year membership in Euro Stoxx 50 Index, Bloomberg reports.
The largest bank in Germany already lost 40% of its value this year after it showed losses three years in a row. It also replaced executive officer and failed stress test of its US business.
Today Deutsche Bank is a first in a row to be excluded from the index, which will be reviewed in September.
If to take a look at most recent ranking of Stoxx, then such companies as Kering SA, Linde AG, UniCredit SpA and Amadeus IT Group, which are currently non-members, could automatically replace four members of the index with the lowest marks and German bank is among them.
According to Bloomberg, exchange traded funds with more than 40 billion euro in assets follow Euro Stoxx 50 Index. Exclusion of Deutsche Bank will put additional pressure on bank’s shares.