MARKET TALK: European Banks Unlikely To Jump For Joy -BarCap

26th Jul 2010 07:54

0654 GMT [Dow Jones] Barclays Capital does not see European bank stocks bouncing back following largely benign stress test results, in the way that their US rivals did following similar test results. "The US stress test proved the catalyst for massive equity recapitalisations, coincided with an economic recovery and was performed on a sector trading one-third below its long-run valuation," notes BarCap analyst Simon Samuels. By contrast, the European results are unlikely to lead to any meaningful capital-raising, come at a time of growing economic uncertainty and were conducted on a sector trading within 10% of its long-run valuation, Samuels says. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 26, 2010 02:54 ET (06:54 GMT)