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US futures pointed to negative open on Wall Street as worries about Deutsche Bank and the broader financial sector continued to weigh on investors' minds, although losses looked set to be fairly limited after Thursday's decline. At 1140 BST, Dow Jones Industrial Average and Nasdaq futures were down 0.3%, while S&P 500 futures were 0.2% weaker.
Gold gained on the final day of the quarter as rising investor anxiety over Deutsche Bank AG's finances spurred a selloff in equities and helped to underpin demand for a haven. Bullion for immediate delivery rose 0.5 percent to $1,326.34 an ounce by 11:27 a.m. in London, according to Bloomberg generic pricing.
Global governments are less likely to come to the rescue of banks than during 2008 financial crisis because the system is more stable, UBS Group AG Chairman Axel Weber said when asked about the prospects of Germany assisting Deutsche Bank AG. "Interventions in the future will only be driven by the need to stabilize the system and there will be no focus on single players," Weber, a former president of Germany's Bundesbank, said in a Bloomberg Television interview with Guy Johnson Wednesday.
Britain's HSBC is seeking to release billions of dollars of capital tied up in the United States without upsetting the country's politicians and regulators, senior sources at the bank said. A logo of HSBC is displayed outside a branch in the financial district in Hong Kong, China, June 2, 2015.
Deutsche Bank is using a tailored financial structure to transfer the risk of losses to investors on a pool of corporate loans, according to people with knowledge of the matter. Deutsche Bank , facing investor concerns about its capital adequacy, plans to securitize more than $5.5 billion of corporate loans, in a move that's expected to reduce risks and bolster the lender's financial picture, people with knowledge of the matter said.
Shares in Deutsche Bank AG plunged Friday after the revelation that the U.S. Department of Justice is seeking $14 billion to settle civil claims over its handing of residential mortgage-backed securities. It's the latest blow for Germany's biggest bank by assets, which is in the middle of a painful transition as it tries to meet tougher regulatory requirements, cut costs and settle multiple legal investigations.
"We continued to make good progress on restructuring the bank. However, in the past several weeks these positive developments were overshadowed by the attention around our negotiations concerning the Residential Mortgage Backed Securities matter in the United States.