Major European stock indices traded in the red zone

European stocks sharply lower as concerns about the European banking sector overcomes markets, while investors evaluate reports on inflation and the labor market in the eurozone.

European stock market influneced by the problems of the largest German bank Deutsche Bank after reports that professional market participants are pulling money out of the bank, as it faces a fine from the US Department of Justice.

Shares of Deutsche Bank fell by almost 9%, for the first time dropping below 10 euros, after Bloomberg reported that some hedge funds have decided to abandon the bank's services for the clearing of transactions in derivatives, signaling the concerns regarding the conduct of the creditor's businesses.

Deutsche reiterated that customers in general continue to support the bank.

The focus of investors was data on inflation and unemployment in the euro zone.

Inflation in the euro zone has doubled in September, and core inflation remained stable. Inflation rose to 0.4 percent from 0.2 percent in August. It was the fourth consecutive increase in prices and in line with expectations of economists. Nevertheless, inflation remains below the European Central Bank's target of "below but close to 2 percent" since the beginning of 2013. Core inflation, which excludes energy, food, alcohol and tobacco, remained stable at 0.8 percent in September. Prices of food, alcohol and tobacco prices rose 0.7 percent, while energy prices decreased at a slower pace of 3 percent. At the same time, the prices of non-energy industrial goods and prices of services rose by 0.3 percent and 1.2 percent respectively.

The unemployment rate in the euro area remained at five-year low for the fourth month in a row in August, according to Eurostat preliminary data. The seasonally adjusted unemployment rate was 10.1 percent, the same as in July. Economists had forecast the unemployment rate at 10 percent. The indicator remains at its lowest level since July 2011l. A year ago, the unemployment rate was 10.7 percent. The unemployment rate in the 28 EU countries was also unchanged in August at 8.6 percent, the lowest level since March 2009. A year ago, the figure was 9.3 percent. In August, there were 20.973 million unemployed in the UE28, of whom 16.326 million were in the euro area. The number of unemployed decreased by 40 000 per month in EU28, while this figure rose to 8000 in the euro area. In annual terms, unemployment fell by 1.587 million in the EU28 and 875 000 in the euro area. The lowest unemployment rates were recorded in the Czech Republic and Germany, and the highest unemployment rate is observed in Greece and Spain.

Shares of the French AXA lost 3.1%, while the German Allianz fell 1.6%, as both companies continue talks over a deal with Standard Chartered, which may allow insurance companies to sell their products in the Asian branches of the bank.

Shares of Telefonica fell 4.3% after the company canceled a planned output on a stock exchange of its Telxius units due to weak interest from investors.

Shares of Burberry Group rose 0.2% after RBC analysts raised the target price of the shares.

Osram's shares rose 1.1% after the German newspaper Handelsblatt reported that several Chinese companies are interested in acquiring the manufacturer of lighting fixtures.

At the moment:

FTSE 6849.88 -69.54 -1.00%

DAX 10286.96 -118.58 -1.14%

CAC 4382.75 -61.09 -1.37%