European stock markets on Friday erased earlier sharp losses and closed slightly higher as concerns over Deutsche Bank's financial health subsided on hopes the lender will pay a lower-than-feared fine to U.S. regulators.
U.S. stocks closed higher Friday, but off their session highs, boosted by a double-digit rally in Deutsche Bank AG shares, which were recovering from brutal losses in the previous session amid heightened concerns about the health of the German lender's balance sheet.
Asian shares got the new quarter off to a firm start on Monday, while sterling tumbled as Britain set a March deadline to start divorce proceedings from the European Union. Risk sentiment had benefited on Friday from reports Deutsche Bank was negotiating a much smaller fine with the U.S. Department of Justice, though the Wall Street Journal reported on Sunday that the talks were still in flux.
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