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* Britain's FTSE ends at new record high
* STOXX Europe 600 index also rises
* Fiat Chrysler partly recovers after slump
* But Renault drops on report of French emissions probe
* UBI Banca top STOXX gainer as banks rise
By Atul Prakash
LONDON, Jan 13 European shares rose on Monday,
led higher by banks stocks, with Britain's blue chip index
finishing at an all-time high after extending a record winning
streak to 14 days.
However, shares of French media company Technicolor
fell 19.7 percent in their worst-ever one-day loss after a
The European banking index was the top sectoral
gainer, up 2 percent, helped by strong earnings from large
lenders in the U.S. and the outlook for higher interest rates in
the world's largest economy.
"With the (U.S. Federal Reserve) having raised rates last
month and is expected to undertake additional hikes in 2017,
banks are gaining on popularity again between investors,
especially as many funds are still underweight this sector,"
Markus Huber, trader at City of London Markets, said.
The European auto index rose 0.8 percent. The index
came off earlier highs after reports that French prosecutors
were investigating Renault over suspected emissions
cheating sent shares in the French car maker down 2.9 percent,
partly offsetting a rebound in Fiat Chrysler.
The Italian car-maker recouped some of its previous
session's 16 percent slump. That was triggered by the U.S.
Environmental Protection Agency's (EPA) accusations that the car
maker illegally masked excess diesel emissions. However Chief
Executive Officer Sergio Marchionne told La Repubblica newspaper
on Friday that the EPA's accusations that Fiat violated
emissions laws will not have any impact on the carmaker's
business plan targets.
Italian stocks dominated the list of top performers on the
STOXX. Investment company Exor, which has a stake in
Fiat, rose more than 6 percent.
UBI Banca surged 9.6 percent, the top STOXX gainer,
after HSBC raised its target price for the stock following the
bank's forecasts on Thursday to generate a net profit of 1.2
billion euros by 2020, up from 900 million euros under current
Britain's blue-chip FTSE 100 share index rose 0.6
percent to an all-time high following a record of 14 days of
gains in a row, while the pan-European STOXX 600 added
Precious metals miners, however, came under pressure as gold
prices retreated from the previous session's seven-week peak on
a stronger dollar. Shares in Fresnillo and Randgold
Resources fell 0.6 percent and 1.2 percent
(Additional reporting by Danilo Masoni; Editing by Jeremy