(Refiled to correct day of week in first paragraph)
FRANKFURT, Oct 4 (Reuters) - Shares in Deutsche Bank rose 2.5 percent on Tuesday, benefiting from the support of its major clients and even rivals, rebounding after concern over its future last week sent the stock to a record low.
German business leaders from companies including BASF , Daimler, E.ON, RWE and Siemens lined up to defend the bank in the German press over the weekend, which included a public holiday on Monday.
JP Morgan Chief Executive Jamie Dimon said late on Monday that he saw no reason that Deutsche Bank should not get over its problems.
While Dimon’s remarks lent some calm to the market they showed his concerns about a potential contagion in the banking industry, market analyst Heino Ruland at Ruland Research said.
Analysts at HSBC said that despite Deutsche Bank’s operational shortcomings fears over the bank’s solvency were overdone.
“Deutsche Bank should be well-equipped to deal with this short-term lack of confidence as it has: strong liquidity, solid funding and 60 percent level 3 assets to tangible equity,” HSBC said in a note to clients.
Deutsche Bank shares fell last week as hopes faded of a swift deal with U.S. authorities over a multi-billion dollar penalty.
The German lender is throwing its energies into reaching a settlement before next month’s U.S. presidential election, with the Department of Justice demanding a fine of up to $14 billion for mis-selling mortgage-backed securities.
A media report late on Friday that Deutsche and the DOJ were close to agreeing a much lower penalty of $5.4 billion lifted the stock 6 percent, but that report remained unconfirmed. (Reporting by Arno Schuetze, editing by Louise Heavens)