Euro zone stock markets are having a great day today, and they’re all being led higher by bank stocks.
Below is a quick rundown:
- France: +2.8%, banks +5.3%
- Germany: +2.1%, banks +3.7%
- Spain: +2.7%, banks +4.2%
- Italy: +1.9%, UniCredit +4.0%
Last week, there were rumblings out of the Bundesbank that the ECB could be preparing to cut interest rates should further deterioration in the economic data warrant such action.
This morning, with German PMI falling to a 5-month low – indicating a deepening contraction in the German manufacturing sector – markets seem to think this will provide exactly the impetus that Bundesbank President Jens Weidmann hinted at last week.