European shares lifted by late surge in Deutsche Bank
* Deutsche Bank closes up 6.4 pct
* STOXX 600 ends up 0.1 pct, DAX up 1 pct
* Deutsche Bank shares down nearly 50 pct in 2016
* STOXX 600 down 6 pct in 2016
By Sudip Kar-Gupta
LONDON, Sept 30 (Reuters) - European shares closed higher on Friday, lifted by a late surge in Deutsche Bank after a media report that it was close to settling with U.S. authorities over alleged misselling of mortgage-backed securities.
The pan-European STOXX 600 index ended 0.1 percent higher, as Deutsche Bank closed up 6.4 percent, rallying towards the end of the European trading session having initially sunk to record lows of below 10 euros at the start of the day.
Traders cited a report by Agence France Presse that Deutsche Bank was near a $5.4 billion settlement with U.S authorities over the mortgage-backed securities affair as contributing to the spike in the company's shares. That would be considerably less than the $14 billion demanded by the U.S. Department of Justice.
Deutsche Bank declined to comment on the media report. In spite of Friday's recovery, Deutsche Bank shares remain near record lows and are down nearly 50 percent so far in 2016. Continuación...