UPDATE 1-Deutsche among fallers as Trump win clouds legal, investment outlook

(Recasts, adds detail, additional share prices, changes slug)

By Sinead Cruise

LONDON, Nov 9 (Reuters) - Shares in European banks fell onWednesday after Donald Trump's election victory, reflectingfears of difficulties in raising capital and uncertainty overU.S. legal cases hanging over Deutsche Bank and other regionallenders.

Shares in Deutsche and Italy's UniCredit shed around 3 percent each on worries that theelection result could smother investor appetite to supportcrucial fundraising plans at both banks in the coming months.

Deutsche is also in the midst of negotiations with the U.S.Department of Justice over a settlement for its allegedmis-selling of toxic mortgage securities in the run up to thefinancial crisis.

Trump's victory will cause more doubt over how long it willtake to resolve those negotiations, which are being conducted aspart of an initiative started by current President Barack Obama.

Spain's BBVA saw its stock slump by 6.4 percent inearly trading, as shareholders fretted about its interests inMexico and the potential economic damage caused by a record fallin the peso versus the U.S. dollar, as well as the border wallTrump has vowed to build.

Europe's largest lender HSBC fell 2.2 percent, asanalysts raised questions about its ability to support itslong-term dividend plans by redirecting billions of dollars fromits U.S. unit to faster-growing businesses in Europe and Asia.

Shares in Asian-focused lender Standard Chartered fell 2.2 percent, while Barclays - which recentlypledged to pursue a transatlantic strategy focused on the U.S.and Britain - dropped 1.7 percent.

Celebrity property magnate Trump paved his way to the WhiteHouse with a series of surprise wins in key states like Floridaand Ohio, rattling world markets that had expected DemocratHillary Clinton to defeat the political outsider in Tuesday'sU.S. election.

TURBULENT YEAR

The result caps a turbulent year for Europe's bankingstocks, who have seen their earnings power crushed by record lowinterest rates and fickle demand for loans, mortgages andinvestment products among businesses and savers.

Any big shock to the U.S. economy could lead to a sharpdecline in European bank earnings through higher risk.

Analysts at Bernstein said in a note on Wednesday that theelection result would prevent a Federal Reserve rate rise"anytime soon", hurting HSBC and StanChart the most.

"It should also result in hits to investment bankingearnings globally which are anyway going through rough times,"the note continued, flagging particular pain for Barclays.

British state-backed banks Royal Bank of Scotland and Lloyds Banking Group suffered falls of 1.5 percentand 1.9 percent respectively.

Investment managers running hundreds of billions of poundsin institutional and private wealth fared little better inshellshocked markets reminiscent of the morning after Britain'svote to quit the European Union in June.

Money managers Schroders and Aberdeen AssetManagement saw stock prices fall by 1 percent and 1.5percent respectively, while shares in emerging marketsspecialist Ashmore slid 1.8 percent.

Europe's largest listed hedge fund firm Man Group was close to bucking the downward trend, with shares flat by0905 GMT.

"The extent of further fallout over the trading day todaywill depend to some degree on the rhetoric from Trump," DerekHalpenny, European Head of Global Markets Research at MUFG said. (Additional reporting by Lawrence White, Simon Jessop andRitvik Carvalho, editing by Rachel Armstrong and Giles Elgood)