UPDATE 2-Comeback in banks, tech lifts euro zone stocks as Steinhoff collapses

Reuters

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* STOXXE up 0.3 percent * Spain, Italy outperform as banks drive gains * Wind turbine makers propelled higher by Citi note * Steinhoff collapses 41 percent (Updates prices, adds detail) By Julien Ponthus and Helen Reid LONDON, Dec 7 (Reuters) - European shares edged up on Thursday as financial and tech stocks recovered, while troubled furniture retailer Steinhoff sank further, stung by an accounting scandal. Investors recovered their risk appetite, pushing euro zone stocks .STOXXE up 0.2 percent, with financials the strongest sector, helping the bank-heavy Italian and Spanish markets outperform strongly with gains of 0.6 to 0.7 percent. Euro zone stocks once again performed better than the broader pan-European STOXX 600 index as UK stocks slipped. Euro zone banks .SX7E jumped 1.1 percent, recovering after a risk-off mood dented financials in the previous session. Banks ING INGA.AS , Santander SAN.MC , Unicredit CRDI.MI and Intesa Sanpaolo ISP.MI drove gains, up 0.7 to 1.4 percent as confidence in the sector, and particularly peripheral European lenders, returned. "In the world, the sector with the biggest potential to grow from here in earnings is probably continental European banks," said Kevin Gardiner, global investment strategist at Rothschild Wealth. The tech sector .SX8P edged up 0.2 percent, recovering slightly from several sessions of losses as investors grew more wary of highly valued parts of the market. Sylvain Goyon, an equity strategist at France's Natixis, said the recent sell-off in technology shares was not driven by a change in the fundamentals of the sector and was not likely to last long. "The key drivers of the industry are still there", he said. He said a number of investors had just decided, as the end of the year neared, to cash in some profits from tech stocks which have outperformed the market. They have reinvested in cheaper financial shares, which are set to benefit from the U.S. tax cuts plan. Some violent corporate stock swings stole the spotlight once again. Shares in Steinhoff SNHG.DE plunged 45 percent, extending the previous session's dramatic fall after the South African retailer revealed accounting irregularities and its chief executive quit. urn:newsml:reuters.com:*:nL8N1O717U The stock was down 80 percent over the two sessions, knocking $12 billion off its market value. At the other extreme, shares in Ladbrokes Coral LCL.L climbed 3 percent after bookmaker GVC GVC.L offered up to 3.9 billion pounds ($5.2 billion) to create a betting giant. Also with the wind in their sails were wind turbine makers Siemens Gamesa SGREN.MC and Vestas Wind VWS.CO , boosted by a note from Citi arguing renewables would account for half of global power generation capacity additions through 2030. The broker gave both stocks a "buy" rating. urn:newsml:reuters.com:*:nL8N1O72MQ Another standout performer was Europe's biggest debt collector, Intrum Justitia INTRUM.ST , up 11.4 percent after confirming an upbeat profit target. urn:newsml:reuters.com:*:nL8N1O72OJ The telecoms sector .SXKP also enjoyed strong gains thanks to French operator Orange ORAN.PA rising 2.1 percent after it set out plans to add customers and boost profit margins by investing in its networks rather than buying foreign rivals. Deutsche Telekom DTEGn.DE , Vodafone VOD.L and BT BT.L also rose 1.6 to 2.5 percent. Carrefour CARR.PA meanwhile lost 2.9 percent, bottom of Paris' CAC 40 .FCHI after a downgrade by Bernstein analysts who argued that recent share price gains were based on "wishful thinking" that a potential deal with Amazon was made more likely by the recent Casino-Ocado tie-up. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Analysts turn positive on European banks http://reut.rs/2AC8irJ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Julien Ponthus; Editing by Georgina Prodhan) ((julien.ponthus@thomsonreuters.com; 02075426189; Reuters Messaging: julien.ponthus.thomsonreuters.com@reuters.net))

 
(( For pan-European market data and news, click on codes in 
 brackets: 
 European Equities speed guide................... EUR/EQUITY  
 FTSEurofirst 300 index.............................. .FTEU3  
 STOXX Europe index.................................. .STOXX  
 Top 10 STOXX sectors........................... .PGL.STOXXS  
 Top 10 EUROSTOXX sectors...................... .PGL.STOXXES  
 Top 10 Eurofirst 300 sectors................... .PGL.FTEU3S  
 Top 25 European pct gainers....................... .PG.PEUR  
 Top 25 European pct losers........................ .PL.PEUR  
     Main stock markets: 
 Dow Jones............... .DJI   Wall Street report ..... .N  
 Nikkei 225............. .N225   Tokyo report............ .T  
 FTSE 100............... .FTSE   London report........... .L  
 Xetra DAX............. .GDAXI   CAC-40............... .FCHI  
 World Indices..................................... 0#.INDEX  
 Reuters survey of world bourse outlook......... EQUITYPOLL1  
 Western European IPO diary......................... WEU/IPO  
 European Asset Allocation........................ EUR/ASSET  
 Reuters News at a Glance: Equities................. TOP/EQE  
 Main currency report:................................. FRX/ ))

Keywords: EUROPE STOCKS/

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