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The market cap of German fund manager DWS fell by €1.15 billion ($1.35 billion) on a report U.S. authorities are investigating whether it overstated how it applied sustainable investing criteria.
The Wall Street Journal report on the U.S. investigation triggered a 13% drop in DWS
DWS,
which is 80% owned by Deutsche Bank
DBK,
which fell 3%. The WSJ report said both the Securities and Exchange Commission, and the U.S. attorney’s office in Brooklyn, were investigating. Neither the firm nor the agencies commented on the report.
European stocks more broadly slipped on Thursday as basic resources stocks fell ahead of the speech by Federal Reserve Chair Jerome Powell on Friday.
The Stoxx Europe 600
SXXP,
fell 0.4% to 470.08, with Rio Tinto
RIO,
and BHP Group
BHP,
each losing ground.
Of the major regional indexes, the German DAX
DAX,
declined 0.6%, the French CAC 40
PX1,
declined 0.4% and the U.K. FTSE 100
UKX,
declined 0.3%.
The biggest Stoxx 600 gainer was Vivendi
VIV,
which rose 4% after holding an investor presentation on Universal Music Group, ahead of its planned listing in Amsterdam.
