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LONDON, July 8 (Reuters) - Banks dampened a tentative rebound in European equity indexes on Tuesday as Germany's Commerzbank was said to be negotiating a settlement with U.S. authorities.
Shares in the German lender fell 3.5 percent as sources told Reuters U.S. authorities have begun settlement talks with the bank and larger competitor Deutsche Bank, down 0.5 percent, over their dealings with countries blacklisted by the United States.
At 0712 GMT, the pan-European FTSEurofirst 300 index was up 0.1 percent at 1,382.48 points at 0712 GMT, with French plane maker Airbus and British miner Rio Tinto among top risers after recommendation upgrades from UBS and Barclays, respectively. (Reporting By Francesco Canepa; Editing by Atul Prakash)