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* Britain's FTSE sets new record high
* STOXX Europe 600 index also up
* Fiat partly recovers after slump
* UBI Banca among top risers
By Atul Prakash
LONDON, Jan 13 European shares rose on Monday,
led higher by automobile stocks, with Britain's benchmark equity
index setting a new all-time high and on track for a record 14th
straight session of gains.
However, shares of French media company Technicolor
fell 18 percent and were on track for their worst-ever one-day
loss after a profit warning.
The European automobile index rose 1.8 percent,
boosted by Fiat Chrysler Automobiles, which gained
more than 5 percent, recouping some of their previous session's
16 percent slump.
That was triggered by the U.S. Environmental Protection
Agency's (EPA) accusations that the car maker illegally masked
excess diesel emissions. However Chief Executive Officer Sergio
Marchionne told La Repubblica newspaper on Friday that the EPA's
accusations that Fiat violated emissions laws will not have any
impact on the carmaker's business plan targets.
Italian stocks dominated the list of top performers on the
STOXX. Investment company Exor, which has a stake in
Fiat, rose more than 6 percent.
UBI Banca surged 8.8 percent after HSBC raised its
target price for the stock following the company's forecasts on
Thursday to generate a net profit of 1.2 billion euros by 2020,
up from 900 million euros under current business plan.
The European banking index also featured among top
sectoral gainers, with investors expecting encouraging results
from some major U.S. financial companies.
"With the (U.S. Federal Reserve) having raised rates last
month and is expected to undertake additional hikes in 2017,
banks are gaining on popularity again between investors,
especially as many funds are still underweight this sector,"
Markus Huber, trader at City of London Markets, said.
Britain's blue-chip FTSE 100 index set another
record high of 7,329.29 points and was last quoted 0.4 percent
higher. It was also on track for its sixth straight weekly gain.
It is up 1.5 percent so far this week, the biggest weekly gain
since early December.
The pan-European STOXX 600 was up 0.5 percent, while
Germany's DAX and France's CAC rose 0.4 percent
and 0.5 percent respectively.
Precious metals miners, however, came under pressure as gold
prices retreated from the previous session's seven-week peak on
a stronger dollar. Shares in Fresnillo and Randgold
Resources fell 1.7 percent and 0.4 percent respectively.
(Editing by Jeremy Gaunt)