Dow Jones up 200 points; Deutsche Bank jumps 14%

US stocks extended gains lead by a sharp recovery in Deutsche Bank shares. The Dow Jones index was up more than 200 points at the same time that the German bank was up 14%. 

Today’s rally contrast the risk-off environment that was prevailing in the markets until the Asian session. With today’s rally the Dow Jones index is back at the same level it had on Wednesday and back into positive territory or the week (+0.40%).

Rumors about a negotiation between the US Justice Department and the bank regarding the $14 demand boosted the stock price, that yesterday lost 7%.  Main indexes in Wall Street (S&P500 +1.01% and Nasdaq 1.00%) were supported also by higher oil prices. The WTI barrel that dropped to $47.00 bounced to the upside, rising above $48.00. From the level it has a week ago crude is up 8%. 

In the currency market the risk appetite environment weakened the yen that fell across the board during the American session. Also the US dollar pulled back and turned negative against commodity currencies. Over the week, the yen, among the most traded currencies, was the worst performer.