Skip to content
Subscriber Only

European Bank Stocks Lead Rally After a Decade of Disappointment

  • Rising bond yields, prospect of higher dividends boost shares
  • Stocks still cheap after surging 75% since September
European Stock Trading at Euronext NV Paris Exchange
Photographer: Cyril Marcilhacy/Bloomberg

This time, it may be more than just another false dawn for European bank stocks.

The worst performers among Europe’s equity markets in the past decade have had occasional hot streaks, but with this year’s re-emergence of inflation promising an end to an era of near-zero interest rates, the sector is among the biggest gainers in 2021.