Commerzbank part nationalisation hits shares

Shares of Commerzbank slumped on news that it is to be partly nationalised.

The Berlin government is taking a 25 percent stake, plus one share.

In return Germany’s second-biggest lender will get 10 billion euros in fresh capital from a government rescue fund.

The capital injection comes as Commerzbank nears completion of its takeover of Dresdner Bank.

European shares finished the day lower as investors reacting to a record drop in German exports in November and disappointing December sales from leading US retailers.

Oil prices slid further as deepening economic gloom and soaring crude inventories in the United States overshadowed geopolitical tensions.

The pound is up against the euro and the dollar on the basis that the Bank of England could have cut interest rates further but didn’t.