Economic Bulletin Issue 5, 2026
• Euro area stock markets rose by 3.3% during the review period, driven by a positive earnings outlook despite volatility surrounding AI sentiment. • Bank stocks saw a significant surge of 14.7%, while the sub-index for non-financial corporations (NFCs) experienced a modest increase of 0.4%. • The growth in banking stocks was triggered by the ECB Governing Council’s policy rate hike on June 11, further supported by the US-Iran MoU and strong Q2 earnings from US banks.
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