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Published: Sat, October 01, 2016
Economy | By Melissa Porter

How the Dow Jones industrial average fared on Thursday

How the Dow Jones industrial average fared on Thursday

Asian stocks gained on Thursday in tandem with an oil price rally after OPEC members agreed to curb output - boosting investor risk appetite.

On Thursday, Wall Street lost about 1 percent as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender.

Oil prices extended gains after rising almost 6 percent on Wednesday after OPEC struck a deal to limit crude output. Deutsche's woes, alongside a grilling of Wells Fargo's chief executive by US lawmakers amid a call for the bank to be broken down due to a scandal over its opening of client accounts without agreement, helped push the S&P bank index down 1.6 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan .miapj0000pus fell 0.5 percent, on track for a 0.4 percent drop for the week. "This Deutsche Bank story is really casting a very long shadow over equity markets", said Peter Kenny, senior market strategist at Global Markets Advisory Group, in NY.

BANK WOES: U.S. authorities are seeking $14 billion from Deutsche Bank to settle legal claims over its sales of mortgage securities in 2007 and 2008, which helped kick off a global financial crisis.

"Our trading clients are amongst the world's most sophisticated investors", Michael Golden, a spokesman for Deutsche Bank, said in an emailed statement. "The OPEC announcement certainly was well-received by the market and the long beleaguered energy sector has found some tailwind after so many quarters of disappointing earnings".

Brent crude LCOc1 was up 0.4 percent at $48.87 a barrel, adding to overnight gains of 5.9 percent.

Fears over whether the world economy
GETTYDeutsche Bank's US listed shares dropped as much as 9.02 per cent in the day

In Russia - a major oil producer - the dollar-denominated RTS share index .IRTS rose 2.3 percent.

Treasury prices ended slightly higher, with the 10-year yield slipping by a basis point at 1.56%.

The Dow is down 118 points, or 0.6 percent. "If you look at the S&P 500, as that story came out we were tooling along just about on the unchanged level and then it dropped rather noticeably", Pisani said.

CURRENCIES: The dollar rose to 101.37 yen from 101.16 yen while the euro fell to $1.121 from $1.122.

Shares traded in Frankfurt were at 10.10 euros ($11.34), down 7.2 percent in after-hours trade, while New York-traded shares for the bank closed 6.7 percent lower at $11.48. The loonie had seen a six-month low of C$1.3281 early on Tuesday amid jitters towards the US presidential debate.

"I wouldn't get caught up in the short-term moves in the Treasury market", said Mike Materasso, co-chair of Franklin Templeton's fixed income policy committee in NY.

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