Trading Nation European banks are facing a make-or-break moment. It had not broken below that support since the financial crisis lows. «Just continue to stay away from European banks,» Wald said on CNBC’s « Trading Nation » on Monday. «While the representative index is still above its low from 2011, I think a more recent breach of its low from 2018, December of last year, is marking a potential resumption of Europe banks long-term downtrend».
It broke below its December lows at the beginning of August. The STOXX Europe banks has fallen 45% over the past 10 years, while the U.S. -focused KBE bank ETF has added 86%. Low to negative interest rates in Europe and a flat yield curve means European bank profitability will remain under pressure and keep these stocks unattractive, says Sanchez. «I still think that the long-term trend is that it’s going to be hard for them to make money.» «.
Click here to read the full article