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Banking gains prod European shares higher

Banking gains prod European shares higher
FILE PHOTO: Traders work at Frankfurt's stock exchange in Frankfurt, Germany March 14, 2019. REUTERS/Ralph Orlowski -
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(Reuters) – Deutsche Bank and HSBC-led gains in banking stocks pushed European stock markets marginally higher on Monday, while a fall in airline shares after a profit warning from Germany’s Lufthansa kept gains in check.

Deutsche, which has been cutting back and reorganising for months, gained 2.9% after the Financial Times reported that the German lender is planning to create a “bad bank” that would house or sell assets valued at up to 50 billion euros.

Asia-focused Standard Chartered and HSBC rose about 1%, tracking a rise in Asian markets after Hong Kong’s leader Carrie Lam climbed down on the extradition bill at the centre of a week of protests in the Chinese satellite.

The pan-European STOXX 600 index rose 0.06% by 0712 GMT, with banking stocks, rising <.SX7P> 0.7%.

Lufthansa plunged 11.5% after the group lowered its profit outlook for the full year 2019, citing price competition from low cost rivals in Europe.

EasyJet and International Consolidated Airlines (IAG) fell 3.3% and 2.5%, respectively, and the travel and leisure sector dropped 0.8%.

(Reporting by Amy Caren Daniel in Bengaluru; editing by Patrick Graham)

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