In this CIO Viewpoint Equity – European Financials: Between short-term political uncertainties and sound fundamentals – we discuss recent volatility related to the French elections, the sector’s sound fundamentals and why it has the potential to continue its year-to-date outperformance.

 

Key takeaways:

  • STOXX 600 Banks is the best-performing subsector in Europe, up 24% YTD despite short-term STOXX 600 underperformance.
  • Stable net interest income (NII) due to increasing loan volumes and rising fees may contribute to further outperformance for European banks.
  • Financial Services could also potentially pick up, helped by decreasing interest rates.

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The CIO Viewpoint below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

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