binance left Coinmarketcap net_left adver left

Fed rate view brightens European bank stock outlook

Thursday, January 6, 2022
Fed rate view brightens European bank stock outlook © Reuters. European Central Bank (ECB) headquarters building is seen during sunset in Frankfurt, Germany, January 5, 2022. REUTERS/Kai Pfaffenbach

By Joice Alves

LONDON (Reuters) - European bank shares rose further above a three-year high on Thursday, boosted by the U.S. Federal Reserve's signal that it could raise rates faster than expected, which lifted some of the December gloom hanging over the sector.

European banking stocks benefitted from a sharp rise in borrowing costs on Thursday after minutes of a December Fed meeting released on Wednesday showed officials might be keen to raise interest rates sooner than expected.

The European bank index jumped 1% to touch its highest level since October 2018, outperforming substantially the pan-European index which fell 1.3%.

Profitability for banks typically increases when central banks hike interest rates. But only a move from the European Central Bank (ECB), which is seen as the last major central bank to raise interest rates, would generate a significant earnings increase for the banks across the region, Max Anderl, a portfolio manager at UBS Asset Management, said of the reaction.

Anderl said the early 2022 rally could still have legs, with banks likely to profit from "the move from growth to value rather than a real improvement of underlying fundamentals".

Standard Chartered (OTC:SCBFF) climbed around 4% to its highest level in two months, Deutsche Bank (DE:DBKGn) rose 3% to a seven month high, while Spain's Caixabank gained 2.5% to its highest level since late October.

European bank stocks had lost steam in December after climbing a 70% in one year to November 2021, more than twice as much the 30% growth of the STOXX 600 index as banks restored dividends and got a boost from Europe's growth rebound. (Graphic: Banks top sectoral performer in Europe, https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwjngkpo/Banks%20top%20sectoral%20performer%20in%20Europe.png)

And with a resurgence in COVID-19 cases, the expectation for growth for the European financial sector in the last quarter of 2021 is the weakest of all STOXX 600 sectors.

Refinitiv data showed that financial sector has the lowest year-on-year expected revenue growth rate at 3.5% compared to the 64.2% growth rate for the utilities sector and an overall 17.2% estimated revenue growth rate for the STOXX 600.

Bank stocks are generally strongly correlated with bond yields and BofA analysts expect 23 billion euros of revenues for European banks for a 100 basis points upward shift in yield curves. That would represent 4% of the estimated industry revenues for 2022 and 15% on profit before tax.

Another factor supporting European bank stocks are their relatively low valuations. Europe's bank sector is trading at 8.8 times forward earnings. That compares to 16.8 times for the STOXX 600 benchmark and 12.9 times for the U.S. banking sector.

Barclays (LON:BARC) analysts said the outlook for banks for 2022 remains overall positive as demand for credit is rising across Europe and stock valuations are still attractive. (Graphic: European banks vs U.S., https://fingfx.thomsonreuters.com/gfx/mkt/zjpqknwmnpx/European%20banks%20vs%20U.S..png)

Leave your comment
ig right nyse right Neteller adver right
APPROVED BROKERS
rakuten_main right top net_home_top ig_main right top Binance _ main right top fbs_main right top tifia_main right top
16-01-2022 22:37:00 (UTC+7)

EUR/USD

1.1418

+0.0004 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (2)

EUR/USD

1.1418

+0.0004 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (2)

GBP/USD

1.3678

+0.0006 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (1)

USD/JPY

114.42

+0.22 (+0.19%)

Summary

Neutral

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (1)

Sell (6)

AUD/USD

0.7211

+0.0006 (+0.08%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (11)

Sell (0)

USD/CAD

1.2537

-0.0015 (-0.12%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (6)

EUR/JPY

130.65

+0.31 (+0.23%)

Summary

Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (5)

Sell (3)

EUR/CHF

1.0443

+0.0014 (+0.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (4)

Sell (1)

Gold Futures

1,818.75

+2.25 (+0.12%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Silver Futures

22.988

+0.070 (+0.31%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Copper Futures

4.4232

-0.0048 (-0.11%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (9)

Sell (0)

Crude Oil WTI Futures

83.55

+0.25 (+0.30%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (1)

Brent Oil Futures

86.16

+0.10 (+0.12%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (7)

Sell (1)

Natural Gas Futures

4.337

+0.114 (+2.70%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (5)

US Coffee C Futures

239.65

+2.65 (+1.12%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (5)

Sell (3)

Euro Stoxx 50

4,272.19

-43.71 (-1.01%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

S&P 500

4,662.85

+3.82 (+0.08%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (7)

Sell (2)

DAX

15,883.24

-148.35 (-0.93%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (1)

FTSE 100

7,542.95

-20.90 (-0.28%)

Summary

Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (3)

Hang Seng

24,238.37

-144.95 (-0.59%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (9)

Sell (0)

US Small Cap 2000

2,161.48

+2.05 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

IBEX 35

8,806.60

-10.30 (-0.12%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

BASF SE NA O.N.

68.110

+0.360 (+0.53%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (4)

Bayer AG NA

52.59

+1.53 (+3.00%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (9)

Allianz SE VNA O.N.

227.00

-0.40 (-0.18%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (7)

Adidas AG

252.35

-3.85 (-1.50%)

Summary

Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (5)

Sell (1)

Deutsche Lufthansa AG

7.241

-0.043 (-0.59%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

Siemens AG Class N

145.86

-5.64 (-3.72%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (4)

Sell (3)

Deutsche Bank AG

11.954

-0.246 (-2.02%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (6)

 EUR/USD1.1418↑ Buy
 GBP/USD1.3678↑ Buy
 USD/JPY114.42Neutral
 AUD/USD0.7211↑ Buy
 USD/CAD1.2537↑ Sell
 EUR/JPY130.65Buy
 EUR/CHF1.0443↑ Buy
 Gold1,818.75↑ Buy
 Silver22.988↑ Buy
 Copper4.4232↑ Buy
 Crude Oil WTI83.55↑ Buy
 Brent Oil86.16↑ Buy
 Natural Gas4.337↑ Sell
 US Coffee C239.65↑ Buy
 Euro Stoxx 504,272.19Buy
 S&P 5004,662.85↑ Buy
 DAX15,883.24↑ Buy
 FTSE 1007,542.95Sell
 Hang Seng24,238.37↑ Buy
 Small Cap 20002,161.48↑ Buy
 IBEX 358,806.60↑ Buy
 BASF68.110Sell
 Bayer52.59↑ Sell
 Allianz227.00↑ Sell
 Adidas252.35Buy
 Lufthansa7.241↑ Buy
 Siemens AG145.86Neutral
 Deutsche Bank AG11.954Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,125/ 6,165
(5/ 5) # 1,158
SJC HCM6,115/ 6,175
(15/ 5) # 1,167
SJC Hanoi6,115/ 6,177
(15/ 5) # 1,169
SJC Danang6,115/ 6,177
(15/ 5) # 1,169
SJC Nhatrang6,115/ 6,177
(15/ 5) # 1,169
SJC Cantho6,115/ 6,177
(15/ 5) # 1,169
Cập nhật 16-01-2022 22:37:07
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,819.30+1.590.09%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2400024480
RON 95-II,III2390024370
E5 RON 92-II2291023360
DO 0.05S1838018740
DO 0,001S-V1873019100
Dầu hỏa1719017530
ↂ Giá dầu thô thế giới
WTI$83.56+0.280.34%
Brent$85.68+0.360.42%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.540,0022.850,00
EUR25.234,8826.649,42
GBP30.246,4531.537,99
JPY192,66203,94
KRW16,5020,10
Cập nhật lúc 10:34:58 17/01/2022
Xem bảng tỷ giá hối đoái
binance main right Fxpro Main Right aetos main right adver main right