Deutsche Bank Shares Rise as Europe's Lenders Rally
By Joshua Kirby
Deutsche Bank AG led Europe's bank shares higher in early trade Monday, recouping some losses after a selloff at the end of last week.
However, banking turmoil might not yet be over, some analysts warned.
At 0730 GMT, Deutsche shares traded 3.8% higher at EUR8.86, recovering some of the previous week's consecutive losses, including a dip of as much as 15% on Friday. Fellow German lender Commzerbank AG rose 2.7%, while France's Societe Generale SA and BNP Paribas SA gained 1.2% and 2%, respectively, having led the blue chip CAC 40 index when the market opened. Spain's Banco Santander SA rose 2.3%; Italy's UniCredit SpA gained 1.2%.
The concerns around Deutsche, Germany's largest lender, last week brought fresh stress to the European banking sector, days after UBS Group AG agreed on a deal to take over struggling rival Credit Suisse Group AG. Market conditions can change very quickly in this environment, analysts Francesco Pesole at ING said in a research note. Shares in UBS on Monday gained only slightly to CHF17.37.
"Friday's turmoil suggests that confidence among European bank bondholders is far from fully restored after the Credit Suisse saga," Mr. Pesole said, though he noted that the share crash may have been overdone.
Indeed, the sector should now be able to look forward with more confidence, analysts at Jefferies said in a note. Many of the concerns raised by investors and media have now passed, and European banks are perhaps in the strongest position they have been in since the last global financial crisis, Jefferies said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
March 27, 2023 04:14 ET (08:14 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
Will Earnings From These 10 AI Stocks Live Up to the Hype?
-
What’s Happening In the Markets This Week
-
What the Next Bitcoin Halving Means for ETF Investors
-
Going Into Earnings, Is Microsoft a Buy, a Sell, or Fairly Valued?
-
March PCE Inflation Index Forecasts Show Mixed Readings On Price Pressures
-
After Earnings, Is Charles Schwab Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Apple Stock a Buy, a Sell, or Fairly Valued?
-
AT&T Earnings: Network Outage Didn’t Stop Solid Growth or Cash Flow
-
This Dividend Stock With a Nearly 7% Yield Is a Buy After Selloff
-
Visa Earnings: Growth Holds Steady
-
GM Earnings: Strong Start to 2024 Is Good Sign for Rest of the Year
-
Tesla Stock Undervalued as Outlook Improves