401 days ago
Valuations for European banks are back to major crisis levels. It remains very volatile as the banking crisis situation evolves, and investors digest prospects of low growth or recession.
861 days ago
Bloomberg reported sell-side analysts are particularly bullish on European banks stocks for next year. Recent market weakness, combined with rising earnings estimates imply a roughly 22% potential gains for the Stoxx 600 Banks Index. It's about double the return versus what's expected for the broader Stoxx Europe 600. According to analysts, strong earnings recovery, tighter monetary policy outlook (rising rates particularly), and relatively low valuations are factors supporting the outlook for European banks. Similarly, in the US momentum for banks has been particularly strong amid a buoyant economy and Fed tightening. JP Morgan yesterday named Bank of America its top pick for 2022.
889 days ago
Traders have pushed back their bets regarding rate hikes to 2023, a sign that they are applying policy makers' message of patience and resilience. Money markets now expect a 10 basis points deposit raise only in February 2023, and not December 2022. Source: Bloomberg
904 days ago
Furthermore, a majority vote of 6-3 decided to leave its bond-buying programme unchanged, as policymakers weighed concerns over rising prices against the downside risks from slowing global growth, and a potential upturn in UK unemployment following the end of the furlough schemes in September. The central bank also said that it would probably become necessary to increase rates over coming months in order to return inflation to the 2% target.
923 days ago
Many banks beat earnings expectations this quarter, and Goldman Sachs was no expectation. Earnings per share were of $14.93 vs. a $10.18 consensus estimate. The revenue was of $13.61 billion vs a $11.68 consensus estimate. Shares of the company rose 2% in premarket trading.
