A red traffic light for DEUTSCHE BANK…


czerwone
By Alistair Smout | LONDON

 

While possibly Europe’s biggest “pain trade”, fund managers are under pressure to buy banking stocks despite the deep problems of Deutsche Bank and some other lenders in the region.

A 9 percent slump to record lows on Friday for the German lender was rapidly reversed in afternoon trade, exemplifying the difficulties investors face in staying bearish on a sector which still faces fundamental problems.

As the third quarter draws to a close, the main European banking index has rallied 19 percent from the start of July, with a number of constituent stocks rising sharply in contrast to those of some German and Italian banks.

This presents a dilemma for fund managers who, following a long period of poor overall performance by European banking shares, had taken heavily underweight positions in the sector.

With the index still down around a quarter this year, those who shifted towards other sectors have outperformed benchmark indices against which their funds are measured.

But now they find themselves in a tough spot. If the banking sector keeps rising overall, they risk losing these gains and underperforming for the full year – unless they raise the proportion of bank shares in their portfolio at least to neutral, matching the weightings in the benchmark indices.

According to strategists at Citi, European banks are the worst performing combination of business sector and geographical region among the 285 they have tracked over the past decade.

Acknowledging that buying into them now constitutes “the world’s biggest contrarian trade”, the analysts led by Jonathan Stubbs said in a note to clients: “History says Buy, but our key message is do not Underweight the sector.”

GRAPHIC – Deutsche Bank’s problems tmsnrt.rs/2dcqb49

 

Read more:http://www.reuters.com/article/us-banks-pain-trade-idUSKCN1201UQ?feedType=RSS&feedName=businessNews&utm_source=twitter&utm_medium=Social&utm_campaign=Feed%3A+reuters%2FbusinessNews+(Business+News)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Powered by WordPress.com.

Up ↑

Poland! White-Red

Przedstawiamy ciekawe wiadomości, artykuły na temat: polityki, kultury, gospodarki, religii, historii, sportu oraz przyszłości. Przekaż dalej wiadomości o istnieniu naszej strony. Dziękujemy!

Zapisz.org

Magazyn literacko-społeczny pod redakcją Przemysława Piętaka. Poetów, pisarzy, eseistów i publicystów zainteresowanych publikacją na naszych łamach zapraszamy do przesyłania propozycji tekstów na adres magazynzapisz@gmail.com

GAZETA POWAŻNA CODZIENNIE

POLSKO BĄDŹ DZIELNA, BYŁAŚ WIELKA I BĘDZIESZ WIELKĄ!

POLSKA DZISIAJ – 2017

POLSKA SIĘ JEDNOCZY, POLSKA JEST TYLKO JEDNA, KATOLICKA I SPRAWIEDLIWA - BÓG, HONOR, OJCZYZNA! NIECH ŻYJE POLSKA!!!

Przystanek 59

Sztokholm 59°19′N 18°03′E. Bo wszystkie historie są podobne. Nawet jeśli mają różne współrzędne geograficzne.

(kom)postownia

Posty rzucane na kupę

Aleteia Polska

Aleteia to międzynarodowy portal tworzony przez katolików, łączący ludzi, którzy poszukują Boga oraz recepty na mądre życie. Duchowość, styl życia, aktualności.

*50 Amp Fuse*

100% Non-Marxist Content

EUROPE DIPLOMATIC

International affairs and diplomacy

Dublinmick's Breaking News

Just another WordPress.com siteindicate. The ability to comment is however disappearing on many posts-The link to this is continually broken on the side bar by 007- https://dublinsmickdotcom.wordpress.com/2015/09/09/the-false-flag-review-to-be-updated-periodically-repost/

treborok

Dla ludzi o otwartych umysłach

Creeping Sharia

Documenting the Islamization of America

W y s z p e r a n e

Tu znajdziesz to czego - moim zdaniem - nie nalezy przegapić

anenduringromantic

Literature. Poetry.

Polityka z premedytacją.

Bloguje: pawełku

blog

www.poczuj.com

Bierki // Sztuki

Film // Muzyka // Teatr // Książka

%d bloggers like this: