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Weather’s role in wildfires in Atlantic Canada | SaltWire #weather #climatechange #wildfireseasonLONDON - Investors are racing back into European bank stocks after a surprisingly upbeat earnings season, pushing their shares to multi-year highs, but the bounce has also lured short sellers betting that the optimism is unlikely to last.The STOXX European banks index climbed past 200 on Friday, its highest level since August 2015, as confidence in the sector's earning power grows while the U.S.
Deutsche Bank is among other European banks which have also caught the eye of speculators, Hazeltree said, while 21 investors are shorting Amsterdam-listed ING, up from seven funds at the start of the year. The rise in both short and long investor interest in the European banks reflects increasingly divergent views about the region's economy and the ability of consumers and companies to cope with higher-for-longer borrowing costs, some analysts said.
The RSI can help investors to determine whether a particular security might be overbought or oversold.The short selling bets by funds on European banks could also be seen as a protective strategy against potential economic headwinds in the region, said Bruno Schneller, managing partner at Erlen Capital Management in Zurich.
That included NatWest, which attracted the most short-selling interest by value according to the Hazeltree data, as the bank prepares for its escape from state ownership. The region's investment banks, which have played second fiddle to Wall Street rivals, also did well in the first quarter with Deutsche Bank reporting much better than expected profit and Barclays showing progress in its strategy.
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