MARKET OVERVIEW - According to JPMorgan, European banks still have room for growth.

Foreks - JPMorgan (NYSE:JPM) stated that the earnings of European banks have become much safer as the risk of ECB interest rates falling below 1.5% diminishes. Analysts maintained their positive outlook on the sector after evaluating financial announcements across the continent, noting that banks are well-leveraged and have a strong macroeconomic backdrop with rising interest rates.

The JPM analysts expect the price-earnings rationalization to continue, and with many countries investing in defense and infrastructure sectors, government stimulus measures are anticipated to boost credit growth. As a result, they updated sector-wide earnings per share forecasts by 3% to 4%. The pan-European Stoxx 600 banking index has risen 27% since the beginning of the year, while the overall gains in the Stoxx Europe index remained at 9%.