Bonds Rally, Stocks Drop Before Debate as Deutsche Bank Tumbles
- German lender sinks on concern it will need to raise capital
- Most Asian index futures signal losses amid haven revival
Deutsche Bank Adds Fear of Contagion to Markets
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Traders bracing for a heated U.S. presidential debate tonight had another element to contend with -- a selloff in global banks.
Equities wiped out their monthly advance as Deutsche Bank AG tumbled to a record low on speculation Germany’s largest lender will need to raise capital. Treasury yields declined the most in almost three weeks, while the yen led gains among major peers. Emerging-market shares slumped after Turkey’s credit rating was cut to junk by Moody’s Investors Service. Oil surged as Saudi Arabia’s offer to cut output opened the door to a future OPEC deal.