The stock market week starts very well. Widespread purchases everywhere and in every sector have brought strong gains on the equity markets. But banking stocks in particular enjoyed the attention of operators. Today the river of money that has flooded the banks has allowed the stock exchanges to start sprinting. And now traders are wondering if it is a rebound or a new bullish phase. Let’s find out thanks to the analysis of the Study Office of ProiezionidiBorsa.
Today the river of money that has flooded the banks has allowed the stock exchanges to start sprinting
Today was a very positive session, in several respects. It is true that a swallow does not make spring, especially in autumn, but sometimes even small signals can be important. And today the European stock exchanges have had at least a couple of significant signals. But before analyzing them, let’s see how they closed the lists.
Let’s start from Piazza Affari. The Ftse Mib index (INDEX:FTSEMIB), closed up 2.2% at 19,160 points. The German stock exchange did even better. The Dax index finished up 3.2%; increase of 2.4% for the Paris and Madrid stock exchanges. The Eurostoxx 50 index rose 2.7%.
Queens of this day were the banks. Across Europe, the banking sector recorded strong purchases. And of course this also happened in Italy. Unicredit rose by 5.4%, regaining 7 euros. Intesa Sanpaolo rose by 2.9%, remaining above the 1.6 euro threshold. Mediobanca gained 4%, Bper Banca 2.6%. Banco BPM’s rise was more contained, of around 1.2%, but the stock was affected by the rises in previous sessions.
Traders are wondering if it is a rebound or a new bullish phase
The strong appreciation of the banking sector was justified by inferences regarding the European banking risk. Possible. As it is certainly plausible to think that the economic data relating to growth from China have favored purchases. Possible, sure, but not likely.
It is very strange how last week the stock markets were worried about the resumption of the pandemic and today they close with gains around 2%. Not to mention the American Stock Exchange, which opened like a train.
In reality, what happened today is that at the opening of the session there were many buy orders on bank stocks. In particular on those most penalized last week. This phenomenon could be occasional and linked to hedging, or the beginning of a new bullish phase. Mystery that the next week’s sessions will reveal to us.
Deepening
To know the multidays analysis and the point of view of the international markets of the ProiezionidiBorsa Study Office, click who.
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