Oct. 27, 2014, 12:52 PM
- “Judging from the market reaction today, investors don’t completely believe in the ECB," says Peter Garnry, head of equity strategy at Saxo Bank. "They are more pessimistic on the banks."
- Financial firms were among the worst performers today following the release of ECB stress tests over the weekend, falling 0.9% vs. the Stoxx Europe 600's decline of 0.6%. Hardest hit were the Italian lenders after that country's banks made up a disproportionate share of those who failed the exams. Not failing, but nevertheless hit: Unicredit (OTCPK:UNCFF, OTC:UNCFY) -2.6%, Intesa Sanpaolo (OTCPK:IITOF, OTCPK:IITSF, OTCPK:ISNPY) -3.1%. Italy's FTSE MIB index (NYSEARCA:EWI) led European declines, falling 2.3%.
- Also taking a hit despite no issues from the stress tests were Europe's larger banking powers: Santander (SAN -3%), Deutsche Bank (DB -1.6%), ING (ING -1.8%), BBVA (BBVA -2.3%).
- EUFN -1.4%
- Previously: ECB stress test failures centered among Italian banks
Oct. 27, 2014, 6:14 AM
- Stocks in Italy lead European shares lower after some of the country's banks came out badly in ECB stress tests.
- Banca Monte dei Paschi di Siena collapses 17.55% after being told that it needs to raise €2.11B. The world's oldest bank is exploring its strategic options.
- And while the tests were otherwise not as bad as expected, the STOXX Europe 600 Banks index is -1.2%. "The stress test results are positive, but the real test will be on European bank lending and on this the jury is still out,” says strategist Luca Paolini.
- KPMG believes banks still face a significant challenge. "The sector remains chronically unprofitable and must address their €879B exposure to non-performing loans as this will tie-up significant amounts of capital," KPMG says.
- Euro STOXX 600 -1.2%, London -0.8%, Paris -0.4%, Frankfurt -0.5%, Milan -2.2%, Spain -1.4%.
- ETFs: VGK, FEZ, IEV, HEDJ, EPV, EZU, EUFN, FEU, GUR, FEP, ESR, UPV, ADRU, EURL, FEEU, EURZ, DBEU, IEUR, FIEU, HEZU, FEUZ, ESTX
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Sep. 10, 2013, 12:11 PM| Sep. 10, 2013, 12:11 PM | 2 Comments
Apr. 30, 2013, 9:26 AM
This just in: Some European banks are starting to mint money again. Today's strong earnings reports from UBS and Lloyds are the latest showing the payoff from the axing of numerous jobs and business lines to refocus on core operations. "We've got double-digit growth rates exactly where we want them," says UBS CFO Thomas Naratil on the CC (transcript). "In APAC, emerging markets, and ultra-high net worth segment." UBS +7.1% premarket. An ETF to keep an eye on: The MSCI Europe Financials Fund (EUFN).| Apr. 30, 2013, 9:26 AM
Mar. 25, 2013, 11:07 AM
The Italy (EWI -3.7%) and Spain (EWP -3.1%) ETFs lead a now-tumbling Europe (FEZ -1.8%) as - maybe we're being too simplistic here - Eurogroup President Dijsselbloem has more or less told anybody with greater than €100K in deposits at what could be a troubled bank they need to think about getting their money out. Italy's Unicredit and Intesa Sanpaolo are halted down more than 5%. EUFN -2.4%.| Mar. 25, 2013, 11:07 AM | 33 Comments
Mar. 25, 2013, 5:12 AM
Mar. 18, 2013, 5:10 AM
European bank shares slide following news of the levy on deposits in Cyprus, which has prompted concerns of a run on banks elsewhere in the eurozone. The Stoxx Europe 600 Banks index -2.1%. In Madrid, BBVA -3.7%; in Milan, Banca Popolare di Milano -3.9%, Intesa Sanpaolo -3.3%, Mediobanca -4.6%, Banca Monte dei Paschi di Siena -3.8%. In Paris, SocGen -4.2%, Credit Agricole -2.9%, BNP Paribas -3.3%. In Frankfurt, Deutsche Bank (DB) -2.8%.| Mar. 18, 2013, 5:10 AM
Mar. 18, 2013, 4:53 AM
As in Asia, shares in Europe slump on the proposed raid on bank deposits in Cyprus, while bond yields in Spain and Italy rise sharply. EU Stoxx 50 -1.7%, London -1%, Paris -1.3%, Frankfurt -1.3%, Milan -2.45%, Madrid -2.3%. Italy's 10-year yields +0.1 bps at 4.71%, Spain's +0.13 bps at 5.06%.| Mar. 18, 2013, 4:53 AM
Mar. 18, 2013, 2:57 AMAsian shares fall sharply following news of the raid on bank deposits in Cyprus as part of the island's bailout. The planned move also sends the euro and oil lower, while the yen regains its safe-haven status. Japan -2.7%, Hong Kong -2.4%, China -1.5%, India -0.9%. Euro -1.3% vs the dollar, -1.3% vs the pound, -2.2% vs the yen and -0.6% vs the Swiss franc. The yen is also +0.9% vs the dollar. WTI -1.2%, gold +0.3%. | Mar. 18, 2013, 2:57 AM
Jan. 7, 2013, 4:04 AMCredit Agricole (CRARF.PK) leads major European banks higher, rising 4.7% after regulators ease Basel liquidity rules, followed by Deutsche Bank (DB) +4.3%, Unicredit (UNCFY.OB) +4.3% and Barclays (BCS) +3.7%. Also, SocGen (SCGLF.PK) +3.4%, HSBC (HBC) +0.75%, Lloyds (LYG) +1.9%, Santander (SAN) +2%, RBS (RBS) +1.5%, UBS (UBS) +2% and Credit Suisse (CS) +3.4%. Italy's Banca Monte dei Paschi di Siena (BMDPY.PK) +15%. | Jan. 7, 2013, 4:04 AM
Aug. 2, 2012, 8:19 AM
Euro shorts are getting fried following the ECB rate decision (no change) and ahead of Mario Draghi's press conference at which big things are expected. The euro +1% vs. the greenback to $1.2342. Maybe more interesting is movement higher in the euro/Swiss franc cross, now at 1.2025 after being locked at 1.2010 for months. FXE +1% premarket.| Aug. 2, 2012, 8:19 AM | 1 Comment
Jul. 20, 2012, 12:29 PM
It's a "risk off" day for European financials (EUFN -3.4%), after Spain's expected bank bailout approval is accompanied by a weak GDP forecast. Unsurprisingly, Spanish banks are the biggest losers: SAN -7.7%. BBVA -8.4%. U.S. banks are only doing better by comparison (XLF -1.3%).| Jul. 20, 2012, 12:29 PM | 8 Comments
Jun. 29, 2012, 3:15 AM
European markets rocket out of the gate as investors cheer progress on a tighter union and bank recapitalization. London +1.7%. Paris +3.0%. Frankfurt +2.4%. Madrid +4%. Euro +1.2% to $1.2592. Sterling +1% to $1.5664.| Jun. 29, 2012, 3:15 AM | 19 Comments
May 17, 2012, 9:34 AM
Bankia chairman Jose Ignacio Goirigolzarri hits the wires telling depositors they can remain "absolutely calm about the security of the savings they have in the bank," and calls the fall in deposits "seasonal." Bankia shares bounce, as does the IBEX, -1% after being down nearly 3% earlier. (previous)| May 17, 2012, 9:34 AM
May 11, 2012, 8:52 AM
The decline in Madrid accelerates as economy minister De Guindos throws out the less than credulous number of €15B as the maximum public cost of bailing out the country's banks, suggesting the government is loading up a pea-shooter rather than a bazooka. IBEX 35 -3.5%. Santander (STD) -4.6% premarket.| May 11, 2012, 8:52 AM
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