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For Traders from Club iNSIDER: Banks May Retain Their Leadership Among Financial Sectors in the Fourth Quarter

Post Views: 267 Banks may outperform other European financial sectors in the fourth quarter, as our industry scoreboard indicates stronger technicals, accelerating earnings growth, and valuations that are only now beginning to normalize. Financial services fall to the bottom and are likely to continue lagging due to weak technicals and deteriorating fundamentals. 1. Banks’ Lead Anchors EU Financials as Financial Services LagBanks may remain leaders among European financial sectors in Q4, topping our industry scoreboard for the third consecutive time. This is supported by price momentum and improving fundamentals, following strong first-half results that led to a consensus for accelerating earnings growth despite a high base of comparison. Capital markets retain second place, supported by relative valuations and sector-leading earnings…

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