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* STOXX 600 rises, but still down around 7 pct in 2016
* Banks lead sectoral gainers
* Man Group tops STOXX gainers
By Danilo Masoni and Sudip Kar-Gupta
MILAN/LONDON, Oct 14 European shares rose on
Friday to claw back ground lost in the previous session, with
banking stocks outperforming, while hedge fund Man Group also
The pan-European STOXX 600 index rose 1.3 percent,
after touching during the previous session a three-month low.
The index however remains down by around 7 percent so far in
2016, but Clairinvest fund manager Ion-Marc Valahu backed having
a "long" position to bet on more gains for European stocks.
He cited expectations that Deutsche Bank would
reach a settlement with U.S. authorities over alleged
mis-selling of mortgage backed securities as one reason for
Deutsche Bank shares rose 2 percent, and Valahu also cited
expectations that Italy would fix problems with its struggling
banks as a further reason to stay upbeat on European stocks.
"You should stay 'long' on European equities. I expect
positive resolutions on Deutsche and Italian banks," he said.
Europe's STOXX Bank was the biggest sectoral gainer
with a gain of 2.2 percent, further undepinned by
better-than-expected results from three big U.S. banks.
Shares in Banca Popolare di Milano and Banco
Popolare both rose more than 6 percent as investors
bet shareholders would approve a merger to create Italy's
third-largest lender when they meet on Saturday.
Shares in French telecoms group SFR climbed 3.8
percent after rival Altice acquired another 5 percent
stake in SFR, with the broader STOXX Europe 600 telecoms index
advancing by 1.4 percent.
Shares in British hedge fund Man Group jumped 13.8
percent to top STOXX gainers after the company posted a rise in
assets under management, and announced a share buyback and the
acquisition of investment management company Aalto.
"Overall, we think (this) is an encouraging release, and
reiterate our 'Buy'," said Bank of America Merrill Lynch analyst
Philip Middleton in a research note.
Software AG slumped 8.7 percent after reporting a
drop in licence revenue.
(Reporting by Danilo Masoni; editing by Mark Heinrich)