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Analysis: Boom In European Bank Earnings Hints At A Rally With Legs

LONDON, Feb 23 (Reuters) – Europe’s banks, which enjoyed a stellar fourth-quarter that yielded a surge in earnings growth to 15-year highs, are still looking cheap and could have more room to rally.

Economic data hasn’t been as bad as many had feared. The euro zone is expected to stagnate rather than contract, while cost of borrowing is still rising.

STOXX 600 financials are expected to have had the highest earnings growth rate of any sector in the last quarter of 2022, and brokers and investors have taken note, responding with a flurry of upgrades to the sector as well as inflows.

Full coverage: REUTERS

Analysis: Russian Economy Holding Up But The Road Back To Prosperity May Be Long

MOSCOW, Feb 23 (Reuters) – Russia’s economy proved unexpectedly resilient in the face of tough Western sanctions last year, but a return to pre-conflict levels of prosperity may be far off as more government spending is directed towards the military.

Even internal forecasts made soon after Moscow sent troops into Ukraine a year ago had predicted the economy would shrink by more than 10% in 2022, exceeding the slumps seen after the Soviet Union collapsed and during the 1998 financial crisis. But statistics agency Rosstat’s first estimate shows a more modest contraction of 2.1% last year.

Full coverage: REUTERS

Analysis: Competition Hots Up As British Banks Fight To Keep Earnings Rising Faster Than Costs

LONDON, Feb 23 (Reuters) – British banks face a tougher battle for mortgage customers and business borrowers in 2023, as rising costs and deposit rates paid to long-suffering savers threaten to outpace flatlining profit margins, senior industry executives and analysts said.

The 2022 annual results from the country’s four biggest lenders in the last week had been expected to show an earnings bonanza as banks increased the rate they charge on loans while leaving deposit rates low.

Full coverage: REUTERS

Asia Stocks See Bright Side After Nvidia Sounds Upbeat

SINGAPORE, Feb 23 (Reuters) – Asian stock markets eked gains on Thursday after better-than-expected revenue at chip giant Nvidia helped the sector in Taiwan and South Korea and offset worries that strong economic data so far this year is a harbinger of even more rate hikes.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) touched its lowest level since Jan. 6 in early trade, but rose about 0.7% as the day wore on.

Full coverage: REUTERS

Morning Bid: A New R*

A look at the day ahead in European and global markets from Wayne Cole.

After a rather flat Wall St finish, Asian stocks have done better so far on Thursday thanks in part to an earnings beat from chip designer Nvidia Corp (NVDA.O). Its stock surged almost 9% after the bell and helped lift Nasdaq futures up 0.9%, with a spillover to South Korean and Taiwan tech.

That offered a brief break from brooding on interest rates, only for the Bank of Korea to spoil the mood with a hawkish-pause on hikes. While it held rates at 3.5% as expected, the commentary warned that restrictive policy would be needed for a “considerable time”.

Full coverage: REUTERS

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Industry Dynamics

Weekly Economic Calendar For December 4th, 2023 – December 9th, 2023

Weekly Economic Calendar For December 4th, 2023 – December 9th, 2023.

2023-12-1 | Industry Dynamics

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2023-11-30 | Industry Dynamics