Europe open: Stocks mixed as Deutsche Bank remains in focus

European stocks were mixed in early trade, with Brexit in focus after UK Prime Minister Theresa May vowed to trigger Article 50 by March, as investors continued to eye the banking sector.

At 0850, the benchmark Stoxx Europe 600 index was flat, while France’s CAC 40 was up 0.3%. German markets were closed for a national holiday.

Oil prices slipped back as investors continued to mull over last week’s agreement by the Organisation of Petroleum Exporting Countries. West Texas Intermediate was down 0.4% at $48.03 a barrel and Brent crude was 0.3% weaker at $50.05.

Meanwhile, the pound fell 0.9% to $1.2852 as Theresa May said over the weekend that the UK will begin the formal Brexit negotiation process by the end of March 2017 with the aim of leaving the European Union by the summer of 2019.

In her first Tory Party conference, the PIM said the government would strike a deal with the EU as an "independent, sovereign" UK.

Connor Campbell at Spreadex said: “After the Deutsche Bank-dominated headlines of last week, Brexit has muscled its way back into the limelight, with pledges from Theresa May over the weekend bringing Britain’s impending divorce from the EU to the forefront of investors’ minds.

“This has, unsurprisingly, been bad news for the pound. Plunging 1% against the dollar and 0.9% against the euro, sterling has been spooked by May’s promise to trigger the dreaded Article 50 by the end of March 2017. Not only that, the PM has also put her weight behind a ‘hard Brexit’ to appease the more rabid members of the Tory party, something that is set to cause conflict between her and her backbenchers. Combine all this volatility together and the pound has been left at its worst price since the start of July.”

On the corporate front, Deutsche Bank remained in focus after its US-listed shares rallied on Friday following reports its settlement with the US Department of Justice over the mis-selling of mortgage-backed securities could be reduced from $14bn to $5.4 billion. German-listed shares in the lender were not trading on Monday due to the public holiday.

Sticking with banks, a report by Reuters suggested Monte dei Paschi di Siena, Nomura and Deutsche Bank have been ordered to stand trial in Milan over alleged financial crimes.

ING was also in the spotlight after announcing plans to shed 7,000 jobs as it looks to cut costs.

Henderson Group surged after agreeing a $6bn merger with US fund management peer Janus Capital.

Quality assurance provider Intertek edged up after saying it has bought EWA Canada, a cyber security specialist, from Electronic Warfare Associates to take hold of an opportunity in the internet of things market.

AstraZeneca advanced as it global biologics research and development arm MedImmune entered into a licensing agreement with Allergan for the global rights to MEDI2070, which is currently in a Phase IIb clinical trial for moderate-to-severe Crohn's disease and ready for Phase II for ulcerative colitis.