La banca es atractiva en Bolsa, pese a la tensión en los bonos
La banca europea mantiene su atractivo en Bolsa, pese a la presión que ha ejercido sobre el sector la tensión en el mercado de bonos, aseguran los analistas. Leer
European banks continue to attract interest on the stock exchange, despite pressure from rising bond market tensions, according to analysts. European banks' shares have fallen by an average of about 10% since late September, as the profitability of debt has started to rise sharply. The source of this rise in profitability concerns investors as it signals a possible increase in defaults due to higher financing costs and a slowdown in growth that could disrupt economic dynamism.
However, uncertainty has increased. Last week, budgetary crisis in France and its excessive deficit added to the mix. The French central bank acknowledges that rising interest rates could choke the country. The market began to debate whether a debt crisis could be said to have begun in the eurozone. Most analysts dismiss this possibility.
They believe the European Central Bank (ECB) is far from having to decide whether to fight inflation by raising interest rates or to keep monetary prices unchanged to protect the debt of the countries. Meanwhile, the International Monetary Fund said last week that developed countries have been the most irresponsible with their borrowing.
Strategists quickly came to the defense of European banking stocks. The world's largest investment bank, JPMorgan, believes the drops are a buying opportunity in the sector and focuses on France, placing BNP Paribas as its preferred investment. Barclays also sent a report to its clients on Friday, assuring that, despite the higher yields of bonds potentially causing banks to sell more on the stock exchange, their underlying businesses remain very strong and third-quarter results should provide the calm investors need now.
The unofficial earnings season started today in the United States with Goldman Sachs, Wells Fargo, JPMorgan, and Citi reporting. Tomorrow is Bank of America and Morgan Stanley's turn. Nevertheless, analysts have not changed their valuations on European banking since the bond sales began. The Bloomberg panel of experts believes European banking stocks should rebound by an average of 15.5%.
The picture is similar for Spanish entities. The IBEX 35 Banks index should rise by 14.6% from current levels.
Written by urgent.news from Expansion ES's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
