* FTSEurofirst 300 and Euro STOXX 50 up 0.1-0.2 pct
* Shell and BG shares rise
* VW falls as emissions scandal widens
* StanChart and UBS shares also drop
By Sudip Kar-Gupta
LONDON, Nov 3 (Reuters) - A rise in energy shares propped up European stock markets on Tuesday, although Volkswagen fell after an emissions scandal that has hit the German carmaker widened.
The pan-European FTSEurofirst 300 index and the euro zone’s blue-chip Euro STOXX 50 index advanced by 0.1 and 0.2 percent respectively.
Shell forecast higher savings from its planned takeover of BG, boosting shares in both energy groups , while Swiss travel retailer Dufry climbed 5 percent after reporting higher sales and profits.
VW shares fell 3 percent after an emissions scandal that has beset the German company widened to include its luxury brands Porsche and Audi.
The U.S. Environmental Protection Agency said late on Monday it was now also looking at 3.0-liter V6 diesel engines. Volkswagen took issue with the findings, saying “no software has been installed” in such engines “to alter emissions characteristics in a forbidden manner.”
Some traders and analysts said they would still avoid VW shares while the issue remained unresolved, with Credit Suisse keeping an “underperform” rating.
“I would steer clear of any rebound in VW shares until the dust settles. At the moment, trading VW is like trying to catch a falling knife,” said Mirabaud Securities’ Rupert Baker.
Standard Chartered also fell 5 percent after it announced plans to raise $5.1 billion in new capital through a rights issue and cut 15,000 jobs by 2018 as new Chief Executive Bill Winters tries to restore profitability at the bank, which has been hit by a slowdown in emerging markets.
Shares in UBS, Switzerland’s biggest bank, fell 3.3 percent. UBS posted a bigger than expected year-on-year rise in third quarter net profit, but some analysts expressed concerns over a lower than expected capital ratio and the fact that results had been flattered by a tax benefit.
RBC Capital Markets’ analyst Fiona Swaffield kept an “outperform” rating on UBS, but added the bank may have slower growth in future, due partly to increasing regulations on the banking industry as a whole.
Today’s European research round-up (editing by John Stonestreet)