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European stocks trim as banks slide

London - European stocks were little changed after a rally in commodity producers was tempered by losses in banks.

The Stoxx Europe 600 Index added less than 0.1% at 10:59 in London, giving up gains of as much as 0.4%.
 
A gauge of miners rose toward its highest level since August 2015, with Anglo American and Rio Tinto Group climbing more than 2.5%.

Firms in Italy led losses among lenders, with UniCredit and UBI Banca sliding at least 4%. Trading in Banca Monte dei Paschi di Siena was halted in Milan after the stock swung from a rise of as much as 27% to a decline of 23%, after chief executive officer Marco Morelli pledged to begin talks with investors to help raise capital.

Lacklustre moves plagued European equities in the past two sessions, after optimism that monetary policy will remain supportive of growth sent the Stoxx 600 to a two-week high.

 Investors are assessing the current earnings season amid speculation about the future of the European Central Bank’s (ECB) quantitative easing and the timing of the Federal Reserve’s next interest-rate increase.

While ECB President Mario Draghi eased investor concern about its bond-buying program ending too soon, he gave little indication on how officials will extend, adjust or wind down QE that’s set to expire in March.

Optimism he will tweak stimulus in ways that will improve bank profitability boosted lenders this month, before today’s retreat.

The Stoxx 600 Banks Index fell 0.9% from its highest level since May.

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