1126 GMT - European banks' earnings are much safer now that the risk of ECB rates falling below 1.5% is reduced, JPMorgan says in a research note. Analysts keep their positive view on the sector after assessing the fiscal announcements across the continents, noting that banks are well leveraged and highly geared towards a stronger macroeconomic context and higher interest rates. "Hence we expect a continued [price to earnings] rerating," they write. JPM analysts update their earnings-per-share estimates across the sector by between 3% to 4% after the government stimulus measures which are set to boost loan growth, with many countries investing in the defence and infrastructure sectors. The pan-European Stoxx 600 banking index has jumped 27% since the start of the year, against a 9% gain for the overall Stoxx Europe index. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
March 25, 2025 07:26 ET (11:26 GMT)
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