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* Pan-European STOXX 600 index up 1 percent
* Miners lead sectoral gainers, oils up as crude prices rise
* Deutsche recovers after CEO says no cash call needed
* Sainsbury drops after disappointing update
By Danilo Masoni
LONDON, Sept 28 (Reuters) - European shares rose on Wednesday, helped by gains among commodity stocks, while Deutsche Bank recovered from all-time lows hit in the previous session after its CEO said there was no need of a cash call.
The pan-European STOXX 600 index rose 1 percent, with basic resources stocks leading sectoral gainers on the back of higher metal prices, while rising crude prices helped energy stocks.
Oil prices rose on Wednesday, after sharp losses in the previous session, as industry data showed a surprise reduction in U.S. crude stockpiles, although worries over a lack of agreement among producers to curb output kept a lid on gains.
British oil company Tullow Oil rose nearly 5 percent, making it the top STOXX gainer, while miners Anglo American, Rio Tinto and BHP Billiton all rose between 1.9 and 2.6 percent.
Consultinvest fund manager Enrico Vacccari said sentiment was helped by a strong U.S. consumer survey released on Tuesday afternoon, while investors’ jitters surrounding the bank sector were soothed after Deutsche Bank CEO’s remarks.
Banks are the worst performing sector in Europe so far this year and Vaccari said consolidation could help ease worries for an industry that is struggling to make more profit because of ultra low interest rates and sluggish growth.
“Mergers are better than capital increases,” he said.
Deutsche Bank rose 3.2 percent after CEO John Cryan personally ruled out a possible capital increase while dismissing a report that the German lender had sought government help to settle a $14 billion U.S. demand.
Goldman Sachs, which has a neutral rating on Deutsche Bank, said its estimated the German lender to pay between $2.8-8.1 billion to settle the dispite although the final outcome could be outside that range.
“As confidence erodes, settling before year-end is important,” Goldman added in a note.
Elsewhere in the sector, Royal Bank of Scotland rose 1.5 percent after the British bank agreed to pay $1.1 billion to settle claims that it sold toxic mortgage-backed securities to credit unions that later failed.
Among other big movers, TUI rose 3 percent after the travel firm nudged up its full-year profit outlook, while Kone fell 2 percent after the Finnish elevator maker kept its targets unchanged.
Sainsbury fell more than 2 percent after Britain’s second biggest supermarket reported another drop in quarterly underlying sales and cautioned that it did not expect a change to competitive market conditions any time soon. (Reporting by Danilo Masoni; Editing by Andrew Heavens)