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Sept. 13, 2019, 5:19 a.m. EDT

European banks continue to rally after ECB cut

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By Steve Goldstein, MarketWatch


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People walk past a branch of Spain's CaixaBank..

European banks advanced on Friday, continuing a rally as the European Central Bank took steps to improve the domestic economy while making it less painful to lenders.

The Euro Stoxx banks index /zigman2/quotes/210599387/delayed XX:SX7E -0.70%  rose as the central bank took several steps favorable to lenders — cutting interest rate less than anticipated, making more holdings eligible for refinancing and introducing an exemption of part of the deposits that have been slapped with a negative rate (so-called tiering).

Bank of Ireland /zigman2/quotes/204220078/delayed IE:BIRG -0.85%  , CaixaBank /zigman2/quotes/203420110/delayed ES:CABK -1.87%   and AIB Group /zigman2/quotes/208990455/delayed IE:A5G -3.62%  each rose about 4%.

The bank index has now climbed 12% over the last month, though it’s still down 16% over the last 52 weeks.

The broader market gauges were less active, as the Stoxx Europe 600 gained 0.12% to 390.94.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.12%  added 0.25% to 12441.44, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.42%  increased 0.31% to 5660.59 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.20%  increased 0.06% to 7348.99,

Market focus turned back to the prospect of a U.S.-China trade deal. President Trump said he would consider an interim deal. “It’s something we would consider, I guess,” he told reporters. At a retreat with Congressional Republicans, Trump added he would consider a tax cut for “middle-income people,” though it’s not clear either what was planned or how that would get through a Democratic-controlled House of Representatives.

A wave of economic data is set for release, including U.S. retail sales for August.

Bollore /zigman2/quotes/206166135/delayed FR:BOL -0.32%  , the French holding company with interests ranging from logistics to media, rose over 4% after reporting a first-half profit rise of 54% and declaring a dividend of 2 cents a share.

/zigman2/quotes/210599387/delayed
XX : STOXX
91.29
-0.64 -0.70%
Volume: 0.00
Oct. 17, 2019 5:50p
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/zigman2/quotes/204220078/delayed
IE : Ireland: Dublin
4.44
-0.04 -0.85%
Volume: 3.96M
Oct. 18, 2019 2:01a
P/E Ratio
10.26
Dividend Yield
3.61%
Market Cap
€4.81 billion
Rev. per Employee
€480,949
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/zigman2/quotes/203420110/delayed
ES : Spain: Madrid
2.58
-0.05 -1.87%
Volume: 19.53M
Oct. 17, 2019 5:38p
P/E Ratio
11.76
Dividend Yield
5.35%
Market Cap
€15.69 billion
Rev. per Employee
N/A
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/zigman2/quotes/208990455/delayed
IE : Ireland: Dublin
3.14
-0.12 -3.62%
Volume: 6.55M
Oct. 18, 2019 2:01a
P/E Ratio
11.13
Dividend Yield
5.41%
Market Cap
€8.84 billion
Rev. per Employee
€324,484
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,654.95
-15.16 -0.12%
Volume: 99,302
Oct. 17, 2019 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,673.07
-23.83 -0.42%
Volume: 88,695
Oct. 17, 2019 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,182.32
+14.37 +0.20%
Volume: 1.09M
Oct. 17, 2019 4:59p
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/zigman2/quotes/206166135/delayed
FR : France: Euronext Paris
3.78
-0.01 -0.32%
Volume: 1.16M
Oct. 18, 2019 3:01a
P/E Ratio
46.89
Dividend Yield
1.59%
Market Cap
€11.10 billion
Rev. per Employee
€282,781
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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