(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)
* STOXX 600 rises 0.7 pct
* Oil stocks biggest sectoral gainer
* Deutsche Bank rises at end of volatile day
* William Hill rises on Amaya merger talks
By Sudip Kar-Gupta and Danilo Masoni
LONDON/MILAN, Oct 10 European shares rose on
Monday, reversing earlier weakness as oil stocks rallied on the
back of stronger crude prices.
The pan-European STOXX 600 index rose 0.7 percent,
rising for the first time in four sessions days.
The STOXX Oil index rose 1.9 percent, making it the
biggest gainer, as Brent crude prices rose to their highest in a
year after Russia said it was ready to join a proposed deal to
cap oil production in a bid to stem a price slide.
Shares in oil majors Royal Dutch Shell, Total
and Eni all rose by more than 2 percent.
Deutsche Bank rose 3.4 percent, reversing earlier
losses after Austria's finance minister Hans Schelling said he
believed the German lender's problems could be resolved without
However some investors were cautious on the stock, which
fell as much as 3.7 percent earlier in the session due to
disappointment at a lack of progress in the company's battle
against a demand by U.S. authorities for up to $14 billion over
"I would still steer clear of Deutsche Bank. They were never
going to sort out the U.S. issues that quickly, and whatever
happens, I still think they will need to have a rights issue,"
said Terry Torrison, managing director at Monaco-based McLaren
Securities. The stock is down around 50 percent so far in 2016.
Shares in William Hill climbed 2.8 percent after the
British gambling company said it was in merger talks with
Canadian online peer Amaya.
EasyJet, which issued a profit warning last week,
fell 2.3 percent after SocGen cut its rating on the stock to
"sell" from "hold".
Some traders said equities remained their favoured asset
class, since record low interest rates in the euro zone and
Britain had hit returns on bonds and cash, driving investors to
the better returns on offer from the stock market.
"My view remains to buy the dip with interest rates
remaining at these low levels," said Lex Van Dam, hedge fund
manager at Hampstead Capital LLP.
(Editing by Mark Heinrich)