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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 -2.69%  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 -2.35%  , CaixaBank /zigman2/quotes/203420110/delayed ES:CABK -0.76%   and AIB Group /zigman2/quotes/208990455/delayed IE:A5G +0.37%  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 -1.51%  added 0.25% to 12441.44, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.25%  increased 0.31% to 5660.59 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.84%  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 -2.12%  , 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
80.76
-2.23 -2.69%
Volume: 0.00
Oct. 5, 2022 4:57p
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/zigman2/quotes/204220078/delayed
IE : Ireland: Dublin
7.16
-0.17 -2.35%
Volume: 5.69M
Oct. 5, 2022 3:56p
P/E Ratio
8.37
Dividend Yield
0.70%
Market Cap
€7.81 billion
Rev. per Employee
€828,772
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/zigman2/quotes/203420110/delayed
ES : Spain: Madrid
3.42
-0.03 -0.76%
Volume: 6.78M
Oct. 5, 2022 4:56p
P/E Ratio
10.43
Dividend Yield
3.47%
Market Cap
€25.96 billion
Rev. per Employee
€273,261
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/zigman2/quotes/208990455/delayed
IE : Ireland: Dublin
2.70
+0.01 +0.37%
Volume: 2.21M
Oct. 5, 2022 3:56p
P/E Ratio
9.31
Dividend Yield
1.67%
Market Cap
€7.19 billion
Rev. per Employee
€336,698
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,479.30
-191.18 -1.51%
Volume: 38,021
Oct. 5, 2022 4:57p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,964.39
-75.30 -1.25%
Volume: 41,806
Oct. 5, 2022 4:57p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,027.15
-59.31 -0.84%
Volume: 478,089
Oct. 5, 2022 3:57p
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/zigman2/quotes/206166135/delayed
FR : France: Euronext Paris
4.81
-0.10 -2.12%
Volume: 326,481
Oct. 5, 2022 4:57p
P/E Ratio
2.21
Dividend Yield
1.25%
Market Cap
€14.42 billion
Rev. per Employee
€252,069
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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