[BENGALURU] European shares rose on Tuesday to distance themselves further from a 3-1/2 month low hit during the previous session, aided by auto stocks which gained on broker recommendations.
The Stoxx 600 rose 0.7 per cent, with Germany's DAX adding 1.5 per cent, while the FTSE 100 gained 0.4 per cent. Volkswagen, which RBC also rated"outperform", added 3.3 per cent. Sources told Reuters the firm is likely to launch the sale of transmissions maker Renk in the autumn, aiming to free up funds to invest more in electric vehicles.
Lenders in Italy have been under pressure over the last month, hurt by the country's differences with the European Union, a possible 3 billion euro fine and concerns about its debt burden.
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