European stocks drop amid banking sector sell-off

Most major European indices traded in the red on the final trading of this week, as heavy losses in the banking sector stocks led by Deutsche Bank AG shares sell-off, weighed on the investors’ sentiment.

Deutsche Bank shares slumped more than 7% on Friday on news that the US Department of Justice (DOJ) has asked the German lender to pay $14 billion fine to settle civil claims related to residential mortgage-backed securities.

Moreover, resumption of the declines in oil prices weighed on the energy and resource stocks as well, adding to the downbeat tone seen across the European markets. Meanwhile, the European equities shrugged-off an upbeat close on its Asian peers, as cautiousness prevails heading into the US economic releases, viz., CPI and consumer sentiment.

Meanwhile, Germany's DAX 30 index drops -0.31% to 10,400, while the UK's FTSE 100 index trades +0.22% higher at 6,748. Among the other indices, the French CAC 40 index declines -0.27% to 4,361, while the pan-European Euro Stoxx 50 index slides -0.48% to 2,963 points.