NEW YORK: The possibility of a US$14 billion fine for Deutsche Bank and a slide in oil prices hit financials and energy stocks on Friday, leading major global stock indexes lower. U.S. data showing a strong increase in consumer prices last month bolstered expectations that the Federal Reserve will raise interest rates later this year, helping send U.S. Treasury yields and the dollar higher.Stocks fell as investors dumped shares of banks in North America and Europe after the U.S. Department of Justice proposed Deutsche Bank pay $14 billion to settle an investigation into its selling of mortgage-backed securities.Deutsche Bank, whose shares dropped roughly 8.5 percent, said it would fight the demand.MSCI's world stocks index was down 0.49 percent and notched its second straight weekly loss.Energy shares fell as crude oil prices slid by up to 2 percent to multi-week lows after swelling Iranian exports reinforced fears of a global glut.Brent crude settled down 82 cents, or 1.76 percent, at $45.77 a barrel, while U.S. crude settled down 88 cents, or 2 percent, at $43.03.While traders have all but ruled out the possibility of the Fed raising interest rates at its meeting on Tuesday and Wednesday, residual doubts and questions about when the U.S. central bank may finally pull the trigger hurt sentiment on Wall Street.The uncertainty over next week's Fed meeting as investors tweak their portfolios ahead of the next interest rate hike weighed on the market according to Jeff Carbone, co-founder of Cornerstone Financial Partners in Charlotte, North Carolina. The Dow Jones industrial average fell 88.68 points, or 0.49 percent, to close at 18,123.8, the S&P 500 lost 8.1 points, or 0.38 percent, to end at 2,139.16 and the Nasdaq Composite dropped 5.12 points, or 0.1 percent, to finish at 5,244.57.

Source: The Star September 16, 2016 22:42 UTC