MarketPulse Europe: Banks Lead Rebound on Hopes for New ECB Support By Investing.com

MarketPulse Europe: Banks Lead Rebound on Hopes for New ECB Support

Stock MarketsFeb 11, 2019 04:55AM ET

This article has already been saved in your Saved Items

MarketPulse Europe: Banks Lead Rebound on Hopes for New ECB Support

Investing.com -- Banks are leading the rebound in European stocks Monday, on rising hopes that the European Central Bank will take action to support the flagging euro-zone economy.

Expectations are rising that the ECB will revive one of its crisis-era tools – so-called Targeted Long-Term Refinancing Operations, or TLTROs – to allow banks to lock in ultra-low funding costs that will help keep the business of lending – just about – profitable in an environment of near-zero interest rates. The ECB has over 700 billion euros in such four-year loans outstanding right now, but hasn't issued a new one in nearly two years.

At 04:45 AM ET (0945 GMT), the Euro STOXX Banks index was up 1.6%, while the benchmark Euro Stoxx 50 was up 1.1% at 3,168.45.

European Central Bank board member Luis de Guindos said Monday that the ECB hadn’t yet discussed when or how it would conduct any new operations, but did say in a speech that a “high degree of continuing monetary support is essential,” which strongly suggests that the central bank won’t let the existing TLTROs expire without some kind of replacement. The biggest outstanding TLTRO, at 379 billion euros, is due to expire in June 2020. Bloomberg reported de Guindos as saying that the TLTRO program would be analysed “in the coming months.”

As it was Spanish and Italian banks that made the most use of TLTRO funds during the crisis, they’re also the ones most vulnerable to losing the benefits of them. Spanish and Italian banks were performing best this morning, with Unicredit (MI:CRDI), Intesa Sanpaolo SpA (MI:ISP) and BBVA (MC:BBVA) all among the top performers.

Northern European banks, which don’t need the ECB’s safety net as much, were also higher. In the past, they’ve tended to suffer more from the side-effect of TLTROs – a glut of liquidity that caps lending margins and profits. But Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) were both up, as was BNP Paribas (PA:BNPP), possibly a reflection of chatter that the ECB will devote more attention to ensuring that a fresh round of long-term support doesn't also create a long-term flatlining of euro interest rates.

Ukraine bans Austrian design firm working on Crimea theatre project By Reuters - Jan 22, 2022 1

KYIV (Reuters) - Ukraine imposed sanctions on Saturday on an Austrian architecture and design company working on a project to build new theatre house in Sevastopol, a city in the...

Germany's Lufthansa is set to buy 40% stake in Alitalia's successor ITA - paper By Reuters - Jan 22, 2022 3

MILAN (Reuters) - Germany's Lufthansa is set to buy a 40% stake in state-owned Alitalia's successor ITA Airways and a deal could be unveiled next week, Italian daily Il Foglio...

Exclusive-Vodafone and Iliad in talks to combine Italian units - sources By Reuters - Jan 22, 2022

By Pamela Barbaglia and Elvira Pollina LONDON (Reuters) - Telecom firms Vodafone (NASDAQ:VOD) and Iliad are in talks to strike a deal in Italy that would combine their respective...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
						<a href="javascript:void(0);" id="commentFlag_{commentID}">
							<span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
						</a>
					</div>
				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

US 30	34,242.7	-472.7	-1.36%
US 500	4,392.5	-90.2	-2.01%
Dow Jones	34,265.37	-450.02	-1.30%
S&P 500	4,397.93	-84.80	-1.89%
Nasdaq	13,768.9	-385.1	-2.72%
S&P 500 VIX	28.85	+3.26	+12.74%
Dollar Index	95.620	-0.105	-0.11%

Crude Oil WTI	84.84	-0.71	-0.83%
Brent Oil	87.74	-0.64	-0.72%
Natural Gas	3.961	+0.159	+4.18%
Gold	1,835.90	-6.70	-0.36%
Silver	24.355	-0.361	-1.46%
Copper	4.5205	-0.0620	-1.35%
US Soybeans	1,415.75	-9.25	-0.65%

SPDR S&P 500	437.98	-8.77	-1.96%
iShares Russell 2000	196.99	-3.76	-1.87%
Invesco QQQ Trust	351.69	-10.03	-2.77%
Direxion Daily Junior Gold Miners Bull 2X Shares	60.98	-3.87	-5.97%
iShares Silver	22.38	-0.24	-1.06%
ProShares Ultra VIX Short-Term Futures	17.20	+2.09	+13.83%
ProShares UltraPro QQQ	56.67	-5.21	-8.42%

Apple	162.41	-2.10	-1.28%
Alphabet A	2,607.03	-59.12	-2.22%
Tesla	943.90	-52.37	-5.26%
Amazon.com	2,852.86	-180.49	-5.95%
Netflix	397.50	-110.75	-21.79%
Meta Platforms	303.17	-13.39	-4.23%
Bank of America	44.92	-0.83	-1.81%

MarketPulse Europe: Banks Lead Rebound on Hopes for New ECB Support

Related Articles