European shares trade 1% lower, banking sector suffering the most


  • European shares trade up to 1% lower as the chairman of the EBA warned that banks shouldn’t feel too safe even if they passed the stress test. The banking sector suffers the most. US stocks trade around 0.50% lower as well despite stronger US eco data. All in all, they keep up quite well amid the hawkish Fed.
  • The Chairman of the European Banking Authority warned that even lenders that passed the AQR shouldn’t feel secure. Furthermore, he said that banks should be pushed to diversify sovereign bond holdings.
  • EU sentiment indicators by the EC unexpectedly rose in October in a sign that the euro area has moved one step away from a renewed economic downturn. German inflation fell more than expected (see news)
  • The Russian ruble snapped a long losing streak, the day before the country’s central bank was expected to raise interest rates to try to slow the currency’s slide. USD/RUB fell more than 4%.
  • In the US, weekly jobless claims broadly stabilized at 287 000 in a sign that the recovery on the US labour market remains strong. The 4-week moving average of initial claims has only been lower once in the past 40 years compared to now. US Q3 GDP printed stronger than expected at 3.5% annualized (see news).

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