Bank Stocks Rally That Beat Tech Now Faces an Earnings Test
- Sector’s gains since 2021 have outpaced Nasdaq and US peers
- Signs of higher-for-longer rates, low valuations fuel optimism
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A rally that has seen European bank stocks outpace both US peers and the Nasdaq over the last three years faces a key test in coming days when most of the region’s major lenders report results.
Optimism over rising earnings and increased capital returns has formed the basis of gains that have extended this year. A 16% rise in the Stoxx 600 Banks Index is the strongest of any sector, taking it to its highest closing level since 2015.