Deutsche to raise EUR 9 bln in share sale: Bloomberg

There is a report on Bloomberg saying that Deutsche Bank will raise EUR 9 bln in capital by selling new shares.

This is mixed news for the euro. It suggests that other banks will also raise capital which could weigh on share markets in Europe near-term as new supply is absorbed. It could be a Euro plus if foreign investors buy into the offerings (as they undoubtedly will).

The market’s first reaction is to sell on the report, pushing EUR/USD down to the low 1.2690s.