Euro­pean lenders get a pos­i­tive sec­ond - day

Malta Independent - - FINANCIAL - This ar­ti­cle was com­piled by Val­letta Fund Man­age­ment Limited, a mem­ber of the BOV Group.Val­letta Fund Man­age­ment,TG Com­plex, Suite 2, Level 3, Brew­ery Str, Mriehel BKR 3000 Freep­hone: 80072344. E-mail: in­ Web­site: Val­letta F

On Thurs­day Euro­pean lenders got a sec­ond-day boost af­ter Don­ald Trump’s pres­i­den­tial win on spec­u­la­tion his term will lead to in­creased in­fla­tion and an eas­ing of fi­nan­cial rules.

UBS Group AG and Credit Suisse Group AG, which get more than 35 per­cent of their rev­enues from the Amer­i­cas, led the rally that pushed Europe’s stocks to their big­gest four-day jump since July. Shares of the big­gest Swiss lender headed for their big­gest surge since 2012, while Credit Suisse jumped 7.1 per­cent. A gauge track­ing the in­dus­try reached its high­est level since March.

Trump’s elec­tion also boosted com­modi­ties as Gold­man Sachs Group Inc. said his pledge to re­vive Amer­i­can in­fra­struc­ture would lead to gains in met­als and gas. That ex­tended gains in Euro­pean min­ers, trad­ing at their high­est since June 2015. Rio Tinto Group and BHP Bil­li­ton Ltd. rose more than 3.3 per­cent, while Antofa­gasta Plc headed for its big­gest surge since 2009. Fres­nillo Plc and Rand­gold Resources Ltd. fell more than 6 per­cent as gold was near a one­week low.

All mem­bers of the Stoxx 600 Banks In­dex climbed, trim­ming its an­nual slide to 13 per­cent from as much as 36 per­cent, and push­ing its val­u­a­tion to the high­est level since Jan­uary rel­a­tive to the broader mar­ket. The cost of in­sur­ing fi­nan­cial com­pa­nies’ se­nior debt against de­fault fell by the most in three months, push­ing the Markit iTraxx Europe Se­nior Fi­nan­cial In­dex of credit-de­fault swaps down four ba­sis points to 93 ba­sis points.

Asian stocks jumped the most in al­most nine months to join a global re­bound on spec­u­la­tion Don­ald Trump will pur­sue busi­ness-friendly poli­cies. Ja­panese shares surged as the yen slumped. The MSCI Asia Pa­cific In­dex climbed 3.1 per­cent to 137.63 as of 4:01 p.m. in Hong Kong, head­ing for the big­gest in­crease since The 15 Fe­bru­ary.

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