(ADVISORY- Follow European and UK stock markets in real time on
the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)
Adds details, closing prices)
* European markets rise after losses in previous week
* Firmer oil prices lift shares of energy companies
* Miners lead sectoral gainers, helped by CS upbeat view
* Deutsche Bank underperforms positive bank sector
By Sudip Kar-Gupta and Danilo Masoni
LONDON, Sept 19 European shares edged higher on
Monday in a modest rebound after two straight weeks of losses,
led by financials and commodity stocks.
The pan-European STOXX 600 index, which had fallen
to a six-week low on Friday, ended up 1 percent. The STOXX 600
remains down by 7 percent so far in 2016.
A rise in financial stocks, which had slumped on Friday
following a threatened $14 billion fine on Deutsche Bank from
U.S. authorities, added the most points to European stock
markets. Shares in banks HSBC, Intesa Sanpaolo
and Santander rose between 1 and 2.5 percent.
But Deutsche Bank fell 2.4 percent, extending
losses following an 8.5 percent slump in the stock on Sept. 16.
Analysts at U.S. bank Citigroup said that, while battered
bank stocks represented a tempting investment opportunity,
buying into the sector would nevertheless represent the "world's
biggest contrarian trade".
"History says 'Buy' but our key message is do not
'Underweight' the sector," said Citi analysts, led by Jonathan
Stubbs, in a note to clients.
The STOXX 600 Basic Resources index was the biggest
sectoral gainer, up 3.4 percent, helped by upbeat comments from
Credit Suisse on optimism over iron ore and coal demand.
The broker raised its targets for BHP Billiton, Rio
Tinto and Anglo American and upgraded its rating
for Glencore to "outperform".
Firmer oil prices also propped up markets, with the STOXX
Europe 600 Oil & Gas index advancing 1.5 percent.
Oil prices rose on Monday after Venezuela hinted that OPEC
and other major oil producers could agree to a market support
deal and as clashes in Libya disrupted attempts to boost crude
"Firmer oil prices are helping things a bit," said Rupert
Baker, a European equity sales executive at Mirabaud Securities.
"We're jagging around a bit at the moment on the European
markets, with no clear direction. Last week was a poor one for
Europe, and I'd still have a slight downwards bias on the
markets," added Baker, citing negative pressures from weak
corporate earnings and an anaemic economic backdrop.
(Additional reporting by Vikram Subhedar; Editing by Gareth