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June 24, 2021, 7:16 a.m. EDT

Banks lead European stocks higher as bond yields recover

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By Steve Goldstein

Banks led European stocks higher on Thursday as bond yields recovered.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.00% rose 07%, with gains for lenders including KBC Group /zigman2/quotes/209494285/delayed BE:KBC +0.81% and the Bank of Ireland /zigman2/quotes/204220078/delayed IE:BIRG -2.14% as the yield on the 10-year U.S. Treasury /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +0.91% rose to 1.49%. Yields had fallen as low as 1.37% as recently as Monday.

Credit Suisse /zigman2/quotes/205269278/delayed CH:CSGN -0.80% rose 3%, as Berenberg upgraded the Swiss wealth management giant to buy from hold, saying valuation is “on its knees” due to the Archegos and Greensill issues, with the bank trading at a 26% discount to the broader sector.

U.S. stock futures /zigman2/quotes/209948968/delayed ES00 +0.35% /zigman2/quotes/210219788/delayed NQ00 +0.50% advanced, after a slight 0.1% decline for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.33% on Wednesday.

“So overall, markets for now seem to be more relaxed again about the Fed and inflation risks, even if they’re still pricing in a faster hiking cycle than the Fed themselves indicated in the dots last week,” said strategists at Deutsche Bank led by Henry Allen.

The Bank of England, as forecast, kept interest rates and its asset purchase program unchanged. The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0952% fell after the decision, as the minutes of the meeting stated a need to “lean strongly against downside risks to the outlook and ensure that the recovery was not undermined by a premature tightening in monetary conditions.”

Economic surveys continued to point to reopening optimism. The German Ifo business climate index exceeded expectations with a rise to a more than two-year high of 101.8 in June from 99.2 in May. The French INSEE business climate index rose 5 points to 113, its highest level since the middle of 2007.

Tecan Group /zigman2/quotes/203551706/delayed CH:TECN -0.35% jumped 12%, as investors warmly greeted news the laboratory-instrument maker was buying Paramit Corp. from private-equity firm Altaris Capital Partners for $1 billion. Paramit is expected to generate $50 million in operating profit on sales of $280 million this year, and Tecan said the deal would immediately and significantly boost earnings per share.

BT Group /zigman2/quotes/209006687/delayed UK:BT.A +2.70% slipped 1% as Numis Securities downgraded the teelcom provider to sell from reduce, with the broker saying its enterprise unit won’t benefit materially from stronger demand for IP communications.

/zigman2/quotes/210599654/delayed
XX : STOXX
458.68
+4.56 +1.00%
Volume: 0.00
Sept. 21, 2021 5:50p
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/zigman2/quotes/209494285/delayed
BE : Belgium: Euronext Brussels
70.00
+0.56 +0.81%
Volume: 462,392
Sept. 21, 2021 5:35p
P/E Ratio
11.51
Dividend Yield
2.44%
Market Cap
€28.94 billion
Rev. per Employee
€322,266
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/zigman2/quotes/204220078/delayed
IE : Ireland: Dublin
4.76
-0.10 -2.14%
Volume: 4.31M
Sept. 21, 2021 4:30p
P/E Ratio
16.08
Dividend Yield
0.00%
Market Cap
€5.22 billion
Rev. per Employee
€543,345
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.32
+0.01 +0.91%
Volume: 0.00
Sept. 21, 2021 3:40p
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/zigman2/quotes/205269278/delayed
CH : Switzerland: SWX
CHF 8.72
-0.07 -0.80%
Volume: 13.19M
Sept. 21, 2021 5:30p
P/E Ratio
127.24
Dividend Yield
1.15%
Market Cap
CHF21.19 billion
Rev. per Employee
CHF621,202
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 4,363.50
+15.25 +0.35%
Volume: 1.68M
Sept. 21, 2021 2:31p
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/zigman2/quotes/210219788/delayed
US : U.S.: CME
$ 15,084.25
+74.75 +0.50%
Volume: 598,011
Sept. 21, 2021 2:31p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,371.98
+14.25 +0.33%
Volume: 1.44B
Sept. 21, 2021 3:41p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3671
+0.0013 +0.0952%
Volume: 0.0000
Sept. 21, 2021 3:41p
loading...
/zigman2/quotes/203551706/delayed
CH : Switzerland: SWX
CHF 572.50
-2.00 -0.35%
Volume: 17,044
Sept. 21, 2021 5:30p
P/E Ratio
45.78
Dividend Yield
0.40%
Market Cap
CHF7.28 billion
Rev. per Employee
CHF356,526
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/zigman2/quotes/209006687/delayed
UK : U.K.: London
159.50 p
+4.20 +2.70%
Volume: 21.72M
Sept. 21, 2021 4:35p
P/E Ratio
10.91
Dividend Yield
4.83%
Market Cap
£15.39 billion
Rev. per Employee
£214,624
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