Positive outlook for European Financial stocks in 2006

11/24/05 - J.P. Morgan Securities

NEW YORK, November 24 (newratings.com) – Analyst Roger Doig of JP Morgan believes that the macroeconomic environment for European retail banks and non-life insurance companies would be favourable during 2006.

In a research note published this morning, the analyst mentions that European retail banks and non-life insurance companies are likely to benefit during 2006 from the anticipated gradual increase in interest rates and bond yields. JP Morgan believes that an anticipated secular shift in reinsurance pricing and demand, particularly in the US, would boost the EPS of European financial stocks through 2006.