European shares snap 7-day losing streak as Deutsche Bank recovers

  • Reuters
  • Stock Market News
European shares snap 7-day losing streak as Deutsche Bank recovers
Credit: © Reuters.

* FTSEurofirst 300 recovers after sharp fall

* Deutsche Bank , Italy lenders lead bank rebound

* Unibet surges after results (Adds details, updates prices)

By Sudip Kar-Gupta and Danilo Masoni

LONDON/MILAN, Feb 10 (Reuters) - European shares were on course to snap a seven-day losing streak on Wednesday, helped by some solid corporate earnings and a recovery in Deutsche Bank DBKGn.DE from 30-year lows.

Gains were slightly reduced after Janet Yellen said the Federal Reserve should be able to gradually adjust monetary policy thanks to strength in the U.S. economy, despite growing concerns over the resilience of global growth.

"Yellen's speech has slightly raised concerns surrounding economic growth ... I think the rebound won't fizzle out today but it needs to be supported by more solid economic data," said Ifigest fund manager Roberto Lottici.

The pan-European FTSEurofirst 300 index .FTEU3 , which had fallen 1.6 percent to its lowest point since September 2013 on Tuesday, was up 2.1 percent at 1,246.34 points. Euro zone's blue-chip Euro STOXX 50 index .STOXX50E also gained 2.6 percent.

Deutsche Bank DBKGn.DE climbed 11 percent after the Financial Times reported it was considering buying back several billion euros of its debt in an attempt to shore up the tumbling value of its securities. said this was bringing back some calm to the banking sector, though the euro zone's banking index .SX7E is still facing its seventh consecutive week of declines - its worst weekly losing streak since 1998 - as investors fret over the threat to banks' profitability and capital strength from compressed interest rate margins.

"The rebound in Deutsche Bank is helping to reassure some investors who had been concerned about possible contagion in the banking sector," said Francois Savary, chief investment officer at Geneva-based Prime Partners.

Italian banks were also sharply higher, with Intesa Sanpaolo ISP.MI , UniCredit CRDI.MI , Banco Popolare BAPO.MI and Popolare Milano PMII.MII all up by over 11 percent, helped by expectations a cabinet meeting on banks could relax rules on layoffs that might help spur consolidation. in gambling group Unibet UNIBsdb.ST surged 6.9 percent after its fourth-quarter underlying profit rose more than expected. mobile software company Opera OPERA.OL jumped 35 percent after a group of Chinese firms made a cash offer, valuing it at 10.5 billion crowns, or $1.23 billion. shares in Danish shipping and oil group A.P. Moller-Maersk MAERSKb.CO slumped 3.9 percent after it reported a fourth-quarter net loss after booking impairments of $2.6 billion on its oil assets. to Thomson Reuters StarMine data, roughly half of the companies in the pan-European STOXX 600 .STOXX index have reported fourth-quarter results, and 52 percent have beaten or met expectations while 48 percent have missed.

The FTSEurofirst remains down 14 percent in 2016, with markets such as the German DAX .GDAXI and British FTSE 100 .FTSE roughly 20 percent below last year's record highs.

(Editing by Hugh Lawson)

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