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European Traders Turn to Banks as Growth Faith Spurs Stock Gain

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European Stocks Pushed Higher by Bank Shares

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The year’s most beaten-down sector in Europe is headed for its best month since early 2015, hitching a ride from the rotation into cyclical stocks worldwide.

Investors have sent shares of lenders including Credit Suisse Group AG, HSBC Holdings Plc and ING Groep NV up more than 10 percent in August. Even amid seasonally-low trading volume and record outflows from the region’s equity funds, bank shares are on track for a second month of gains, supported by earnings that beat analysts’ estimates for the first time in a year.