European bank stocks surge but short sellers raise doubts

European bank stocks surge but short sellers raise doubts

Investors are engaged in a high-stakes battle of optimism versus scepticism.
Published on: 

As European bank stocks soar to multi-year highs amid a buoyant earnings season, investors are engaged in a high-stakes battle of optimism versus scepticism. The STOXX European banks index hit its peak since 2015, yet a surge in short selling suggests doubts about the rally's longevity. With divergent views on economic prospects, investors grapple with technical indicators and protective strategies. Amidst this volatility, individual stock selection emerges as a crucial factor in navigating uncertain waters.

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SOURCE: REUTERS

By Sinead Cruise, Nell Mackenzie and Lawrence White

LONDON, May 13 (Reuters) – 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.

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