LONDON, Oct 4 (Reuters) - European shares advanced in earlytrading on Tuesday, with British testing company Intertek Group leading the market higher after a broker update whileDeutsche Bank further recovered after recent steep losses.
The pan-European STOXX 600 index was up 0.6 percentby 0717 GMT, while Germany's DAX, which resumed tradingafter a holiday on Monday, was up 0.5 percent.
Britain's FTSE 100 rose 1 percent to 7,056.77 points- its highest level since the middle of 2015 and the first timeit had breached the 7,000 point level since that period.
Deutsche Bank rose around 2 percent to a two-week high. Itsshares had slumped to a record low on Friday before bouncingback on expectations of a swift deal with U.S. authorities overa multi-billion dollar penalty.
HSBC said that despite Deutsche Bank's obvious operationalshortcomings, fears over the bank's solvency were overdone.
However, HSBC cut its target price for the bank, forecastingchallenging conditions for the banking environment and addingthat Deutsche Bank might lose revenues due to the short-termlack of confidence.
Shares in Intertek rose more than 4 percent, the top gainerin the STOXX 600 index, after Jefferies raised its stance on thestock to "buy" from "underperform" and lifted its target priceto 4,300 pence from 3,000 pence. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)
Intertek Group (ITRK)