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European shares advances assisted by Intertek, Deutsche Bank

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European shares advanced in early trading on Tuesday, with British testing company Intertek Group leading the market higher after a broker update while Deutsche Bank further recovered after recent steep losses.

The pan-European STOXX 600 index was up 0.6 percent by 0717 GMT, while Germany’s DAX, which resumed trading after a holiday on Monday, was up 0.5 percent.

Britain’s FTSE 100 rose 1 percent to 7,056.77 points, which is its highest level since the middle of 2015 and the first time it had breached the 7,000 point level since that period.

Deutsche Bank rose around 2 percent to a two-week high. Its shares had slumped to a record low on Friday before bouncing back on expectations of a swift deal with U.S. authorities over a multi-billion dollar penalty.

HSBC said that despite Deutsche Bank’s obvious operational shortcomings, fears over the bank’s solvency were overdone.

However, HSBC cut its target price for the bank, forecasting challenging conditions for the banking environment and adding that Deutsche Bank might lose revenues due to the short-term lack of confidence.

Paul

The author Paul