Europe open: Stocks push higher as Deutsche Bank recovers

European stocks rose in early trade as Deutsche Bank recovered from recent losses.

At 0900 BST, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 0.6%, while France’s CAC 40 was 0.8% firmer.

Meanwhile, oil prices retreated. West Texas Intermediate was down 0.8% to $48.42 a barrel and Brent crude was 0.7% lower at $50.53.

In currency markets, the pound slumped to a 31-year low against the dollar as Theresa May’s pledge to trigger Article 50 by March continued to weigh on the currency. Sterling dropped to $1.2764 from $1.2858 late in New York on Monday.

Ana Thaker, market economist at PhillipCapital UK, said: “Sterling’s struggle continues as it breaches Brexit lows and drops to the mid $1.27 level despite strong data from the UK yesterday. This is less likely to be over immediate concerns regarding the economy but indicative of the long term outlook markets hold. There is great uncertainty regarding how the Brexit negotiations will take shape and this could see a renewed bout of volatility in the currency.”

The drop in sterling benefited FTSE 100 exporters, helping to propel the index back above the 7,000 mark.

On the corporate front, Deutsche Bank was on the front foot as it traded in Germany for the first time this week after markets were closed on Monday for a public holiday. US-listed shares in the lender surged on Friday after a media report suggested its fine from the US Department of Justice could be reduced from $14bn to $5.4bn. On Monday, the Wall Street Journal reported that talks between the two were ongoing and no settlement has been reached.

Elsewhere, French luxury group LVMH was also in the black after saying it will buy an 80% stake in German luggage maker Rimowa for €640m.

Budget airline Ryanair flew a little higher after reporting a 13% jump in traffic for September to 10.8m customers.

Pharmaceutical giant Astrazeneca was a little lower after it announced a disappointing drug trial but said its Tagrisso drug has been recommended by NICE.

On the data front, the eurozone producer price index is at 1000 BST.