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Aug 3 (Reuters) - European shares inched higher on Monday as
German stocks outperformed on the back of improving Chinese
manufacturing data, but a warning from Europe's biggest lender
HSBC over rising bad loans sent banking stocks lower.
The pan-European STOXX 600 index .STOXX were up 0.1% at
0714 GMT, with technology .SX8P , automakers .SXAP and oil &
gas firms .SXEP leading the gains.
The exporter-heavy German bourse .GDAXI gained 0.6% after
a private sector survey showed manufacturing activity in China
expanded at the fastest pace in nearly a decade as domestic
demand improved. Euro zone manufacturing PMI data are scheduled for release
at 0800 GMT.
However, the gains were capped as U.S. lawmkers were divided
over another coronavirus stimulus package, while worries
remained about a further tightening of restrictions in Europe as
COVID-19 cases rose. Banking stocks .SX7P took a hit as HSBC HSBA.L dropped
4.4% after its half-yearly profits more than halved and the
lender warned its bad debt charges could blow past a previous
estimate to $13 billion this year. France's Societe Generale SOGN.PA also declined 2.3% as it
reported a 1.26 billion euro ($1.48 billion) second-quarter loss
after booking a writedown on the value of its trading business.
Siemens Healthineers SHLG.DE was down 4.8% after the
German health group said it was buying U.S. firm Varian Medical
Systems VAR.N for $16.4 billion.