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* STOXX 600 recovers slightly after Fed official comments
* Partners Group rises to record high after H1 results
* STOXX 600 still down around 6 pct in 2016
LONDON, Sept 13 European shares traded flat on
Tuesday after a three-day losing streak, as dovish comments from
U.S. Federal Reserve official Lael Brainard lent some support to
Brainard said on Monday that the Fed should avoid removing
support for the U.S economy too quickly, which led traders to
trim bets on the likelihood of a September U.S. rate hike.
Expectations of such a rate-hike had caused the pan-European
STOXX 600 index to fall in the last three sessions, but
Brainard's comments helped it recover slightly to trade flat.
The STOXX 600 remains down by around 6 percent so far in 2016.
Shares in Swiss investment management company Partners Group
surged 10 percent to a record high after posting higher
interim profits, although British online grocer Ocado
fell 12.9 percent after warning of margin pressure.
"This rebound looks weak to me, and lacking in conviction.
The economic environment in Europe is still not that good," said
Terry Torrison, managing director at Monaco-based McLaren
Evidence of Europe's weak economic backdrop, which has led
the European Central Bank (ECB) to hold interest rates at record
lows and keep open the option for more monetary stimulus, was
provided by Italy on Tuesday, as the country's economy minister
warned Italy would cut its growth estimates.
Strategists at U.S. investment bank Citigroup said Italian
stocks could be worth a buy, based on expectations that Prime
Minister Matteo Renzi would emerge from a forthcoming referendum
in a stronger position, provided investors chose carefully.
Among Citigroup's favoured Italian stocks were catering
company Autogrill and drinks group Campari.
Echoing that note of general caution, Berkeley Futures'
associate director Richard Griffiths said he would use any
bounce up in European stock markets to sell equities for a
profit, given the lingering macroeconomic concerns.
"I still think the pressure is to the downside," he said.
(Editing by Raissa Kasolowsky)