Deutsche Bank AG (USA) (DB), Bayer AG (ADR) (BAYRY): Will Germany’s Momentum Help European Markets Find Their Stride?

Deutsche Bank AG (USA) (NYSE:DB)’s already struggling to convince investors that it’s well-capitalized, despite the company’s $3.88 billion capital increase back in April that briefly led to analysts raising projections for the financial stock. The bank earlier in the year announced that it had hit current leverage ratio requirements, but with many European banks under scrutiny, investors may want to opt for caution in Deutsche Bank AG (USA) (NYSE:DB)’s case. It’s no reason to sell in a panic, but, as always, performing due diligence is a must.

Deutsche Bank AG (USA) (NYSE:DB)’s hardly the only German firm under regulatory fire, but Bayer AG (ADR) (OTCMKTS:BAYRY)‘s situation in China could be quite a bit messier. Chinese regulators have already launched sweeping investigations of the health-care sector, and Bayer AG (ADR) (OTCMKTS:BAYRY) announced this week that Beijing’s added the company to its target list.

China’s investigations into anti-competitive behavior and corruption have expanded significantly since GlaxoSmithKline plc (ADR) (NYSE:GSK) first captured the spotlight in this story. Bayer AG (ADR) (OTCMKTS:BAYRY)’s a big player in the Asia-Pacific region – it receives more than 20% of global revenue from the region — so it can’t afford a big hit from Beijing. While nothing’s been decided yet, Bayer investors have to keep a close eye on these developments.

The article Will Germany’s Momentum Help European Markets Find Their Stride? originally appeared on Fool.com is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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