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DNB - DNB ASA News Story

NOK180.95 0.3  0.1%

Last Trade - 09/04/21

Large Cap
Market Cap £24.08bn
Enterprise Value £63.62bn
Revenue £5.25bn
Position in Universe 31st / 1831

LIVE MARKETS-Any buying opportunity among banks?

Wed 24th February, 2021 11:07am
* European shares rebound, up 0.3% * German Q4 GDP growth revised up to 0.3% * Fed's Powell pushes back on inflation worries * Telecom Italia shines on outlook, tax boost * Futures point to muted start on Wall St Feb 24 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com ANY BUYING OPPORTUNITY AMONG BANKS? (1105 GMT) European bank stocks staged quite a rally in the last months, supported by reflation trade and low valuations. Now that the valuation gap seems to be closed are there any good bargains around? Not much in the euro zone, as “inflation is expected to lag other developed markets, with banks suffering revenue pressure from negative rates and weak demand,” according to Berenberg. Its top pick is ING ING.AS . UK is interesting as investors’ patience should be rewarded via attractive near-term yields, given the UK regulator’s favourable stance – namely avoidance of negative interest rates -- versus eurozone peer. Top picks are Barclays BARC.L and NatWest NWB_pa.L . Nordic are the best due to "a less penal monetary policy." Nordea NDA.ST and DNB DNB.OL are offering the most value with the latter benefiting from the fact that Norway is likely to normalise interest rates more quickly than other countries. The sector in Europe trades at around 9 times 2022 EPS consensus estimates, in line with the historical average, suggesting that consensus upgrades are needed to drive further outperformance. (Stefano Rebaudo) ***** GERMANY VS BRITAIN (0842 GMT) European shares open mixed with a strong pound dragging down the FTSE, while upbeat German GDP figures helps to lift the pan-European index. Stronger-than-expected growth in Germany's economy pushed the Dax .GDAXI up 0.5% and the STOXX 600 0.2% higher, with the travel and leisure index .SXTP rising 0.8% Strong exports and solid construction activity helped the euro zone's largest economy to grow 0.3% in the final quarter of last year. urn:newsml:reuters.com:*:nL8N2KU28E Going on opposite direction, Britain's blue chips .FTSE fall 0.6% as the stronger pound, which rose to $1.42 for the first time in three years, weighed on exporters. In terms of single stocks, the top mover is Telecom Italia TLIT.MI , with share jumping 6.6% after results. Italy's biggest phone group said it expects profit and sales to stabilise this year after a difficult 2020. urn:newsml:reuters.com:*:nL1N2KT2MA (Joice Alves) ***** MORNING BID: CAREFULLY, PATIENTLY, SLOWLY (0800 GMT) That was effectively the message from Federal Reserve Chair Jerome Powell to investors fretting that an inflation explosion in coming months will continue to drive up bond yields. His message only calmed markets a tad however, with 10-year U.S. Treasury yields holding just shy of one-year highs and stock markets resuming their fall. As tech continues to get clobbered, Asian stocks fell nearly 2% overnight, with China and Hong Kong leading the way lower. Powell's words didn't help the tech-heavy Nasdaq as investors continued rotating into cyclicals but the S&P500 managed to snap a five-day losing streak, reversing a 2.3% intraday fall which was the largest so far this year. But European equities look set for a shaky start. Retail darlings Bitcoin and Tesla are firmly entrenched in bear market territory. Signs of reflation trades elsewhere too, with copper at 9-1/2 year peaks, the Australian dollar scaling a 3-year high and Japanese ten-year bond yields firmly perched at a November 2018 high. German Bund yields have so far posted their biggest monthly jump in three years. Key developments that should provide more direction to markets on Wednesday: -Germany's economy grew by a stronger-than-expected 0.3% in Q4 2020 -New Zealand's central bank tempered policy tightening expectations South Africa presents April 2021-March 2022 fiscal year budget U.S. Treasury sells 2-year, 5-year notes German 10-yr Bund auction US new home sales Jan -Lloyds reported a sharp profits fall for 2020 but resumed paying a dividend; Europe's biggest hotel group Accor reported an annual loss; consumer goods maker Reckitt Benckiser posted the strongest sales in its history last year. -U.S. corps: Eaton Vance, Lowe’s, Office Depot, Apache, Nvidia (Saikat Chatterjee) ***** MORNING CALL: EUROPE SET FOR SOFTER OPEN (0635 GMT) European bourses are seen opening lower, mirroring Asia's markets, which fell sharply overnight, as recent gains in U.S. Treasury yields put lofty equity valuations under pressure even as bond markets stabilised. Fed's Chairman Jerome Powell on Tuesday did not seem too perturbed by a selloff in Treasuries that has driven 10-year yields up by 40 basis points this year, telling Congress it was a statement on the market's confidence in the pandemic recovery. Looking ahead, Germany's Q4 GDP number, out at 0700 GMT, is expected to confirm a 0.1% expansion. (Joice Alves) ***** <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global stock valuations surge well above long term averages https://tmsnrt.rs/3kgV34B banks https://tmsnrt.rs/2ZHPP8y ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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