European Banks Seen Gaining as ECB Tests Persuade

European bank shares and bonds may rally tomorrow after the European Central Bank gave most lenders a clean bill of health in tests analysts described as credible.

“Our initial view is that the test is comprehensive,” JPMorgan Chase & Co. equity analysts led by Kian Abouhossein in London, wrote in an e-mailed report today. “We expect a positive reaction, in particular on banks where the market had concerns around capital at risk.”