Deutsche Bank shares pare back Tuesday’s big gains

FRANKFURT, Germany - A European rally in Deutsche Bank (DB) shares has lost some steam as investors face continued uncertainty about how big a U.S. penalty the bank will receive.

Deutsche Bank shares were only 0.3 percent higher in early afternoon trading in Europe on Tuesday. Earlier, they had risen more than 3 percent as trading in Germany resumed after a holiday Monday.

Shares in Germany’s biggest bank have been under pressure since it revealed the U.S. Justice Department had proposed at $14 billion payment to settle an investigation into the bank’s dealings in bonds backed by shaky mortgages.

Deutsche Bank shares rallied strongly off record lows on Friday based on a news report that a lower fine was in the offing.

Low profits have also weighed on the stock, which is off 48 percent this year.