Banking is attractive on the Stock Exchange, despite the bond tension
European banking maintains its appeal on the Stock Exchange, despite the pressure exerted on the sector by tension in the bond market, analysts say.
European banks remain attractive to investors despite market volatility, according to analysts. Their stocks have fallen around 10% since late September due to rising bond yields, which have raised concerns about potential loan defaults and economic growth. However, analysts believe the European Central Bank is unlikely to raise interest rates to combat inflation, and instead expect it to keep rates steady to support debt-stricken countries.
JPMorgan and Barclays have defended European banks, with JPMorgan naming BNP Paribas as a top pick for investment. Analysts expect European banks to rebound by 15.5% on average, with Spanish banks also expected to rise by 14.6%.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
