Economics
Traders See Stress-Test Relief After Europe Banks Slump
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The correction that swept European stocks last week induced a full-blown bear market for lenders’ shares. Investors are betting central-bank stress test results later this month will provide relief.
Deutsche Bank AG, which fell 11 percent in a month, and BNP Paribas SA, down 13 percent, helped send equity returns to more than 2 percentage points lower than the broader market, according to data compiled by Bloomberg. Traders eyeing the stress tests are pushing the cost of hedging against further declines to a two-year low relative to the Euro Stoxx 50 Index.