Hello I have a question, I think they will nationalize Deutsche Bank but doesn't that mean that the stock is suspended and the equity holders get wiped out? That would create a panic on the market anyway wouldn't it?

Eoin Treacy's view

Thank you for this question which may be of interest to other subscribers. Yes, if Deutsche Bank is nationalised the equity shareholders would be wiped out and since this would not be the first Eurozone bank to have the same fate we cannot rule out the possibility. 

Following last week’s emphatic upside key day reversal the share is enjoying at least a near-term reprieve. However, a break in the medium-term progression of lower rally highs would be required to question the medium-term downtrend. 

In the event that a major bank like Deutsche Bank was nationalised, yes it would represent a major bearish catalyst for equities which is why markets were selling off so aggressively before last week’s bounce.