LONDON Oct 4 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
- 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.
Shares in Intertek rose more than 4 percent, the top gainer
in the STOXX 600 index, after Jefferies raised its stance on the
stock to "buy" from "underperform" and lifted its target price
to 4,300 pence from 3,000 pence.
(Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)