Barclays and Deutsche Bank shares hit decade highs
European bank stocks are rallying on a string of positive news, including relatively lower risk of war in the Middle East and signs of improving trade relationships between the U.S. and China.
Barclays shares have risen to their highest level in 15 years. The stock last traded at the current level in April 2010, in the aftermath of the financial crisis.
Yet, analysts at Bank of America suggest the stock is “cheapest” among the lender’s peers due to its strong earnings.
In its first quarter, the lender reported £2.7 billion ($3.71 billion) in net underlying profit.
“Barclays printed a strong set of Q1 numbers, largely driven by [investment banking] revenues,” said BofA’s analysts in a note to clients in May.
“While we can understand concerns around some of its business footprint in the current environment … the Q1 print goes some way to alleviate them. In particular, it was pleasing to see (i) the investment bank (particularly the Markets business) captured the opportunities in the quarter while holding [risk-weighted assets] broadly flat (ex FX), and (ii) there were no signs of stress in underlying credit quality within the US Consumer business, with delinquencies flat [quarter on quarter] and write-offs stable [year on year],” they added.
Meanwhile, Deutsche Bank‘s stock has rallied to its highest in nearly a decade. Shares last traded at 25.84 euros ($30.27) in August 2015.
Analysts at JPMorgan said there are still “several bottom-up drivers for the business going forward”.
“DBK aims to enhance shareholder value by deploying capital at a return on equity exceeding the cost of equity, and generating positive shareholder value add in Corporate and Investment Banking products,” said the Wall Street bank’s analysts, led by Kian Abouhossein. “Overall, DBK has broadened its business drivers and geographical depth, particularly in the UK, Asia, and Latin America.”
Other European banks that also rallied to their 52-week high are Nordic lenders Sydbank, Jyske Bank and Norion Bank.
— Ganesh Rao
American fund managers welcome decision to scrap Section 899
The Investment Company Institute (ICI), which represents fund houses in the U.S. and some in Europe, welcomed the powerful Senate Finance and House Ways and Means committees’ decision to remove Section 899 from U.S. President Donald Trump’s spending bill.
The ICI previously lobbied Congress against Section 899, warning that the provision impacted most foreign investments in the U.S. stock market, according to documents seen by CNBC.
“ICI applauds today’s announcement from Chairman Crapo and Chairman Smith that Section 899 will be removed from the One Big Beautiful Bill Act following the Administration’s agreement with G7 countries,” the ICI said in a statement.
“We thank Treasury Secretary Scott Bessent, Chairman Crapo, and Chairman Smith for leading the successful negotiations and ensuring the United States continues to be the premier destination for global investors.”
— Ganesh Rao
JD Sports shares pop 8%
LONDON, UNITED KINGDOM – 2021/05/17: A scene outside JD sport shop. (Photo by May James/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images
British sports apparel retailer JD Sports is currently topping the Stoxx 600 with a gain of 7.8%.
The stock’s rally comes better-than-expected fourth quarter results from sportswear giant Nike. More than 90% of JD Sports’ sales are derived from major brands including Nike, Adidas and Puma.
— Chloe Taylor
U.S. Treasury Secretary Bessent seeks end to ‘revenge tax’ on foreign investors
US Treasury Secretary Scott Bessent speaks to reporters after meeting with Senate Republicans at the US Capitol in Washington, DC, on June 24, 2025.
Saul Loeb | AFP | Getty Images
In case you missed it, U.S. Treasury Secretary Scott Bessent on Thursday evening said that he had asked the Senate and the House of Representatives to strip a measure aimed at penalizing some foreign investors out of President Donald Trump’s spending bill.
The Section 899 measure — which became colloquially known as a “revenge tax” — would have slapped new taxes on investors from certain countries, cutting into their returns on U.S. equities and other assets.
Bessent said he asked lawmakers to ditch Section 899 after U.S. officials came to a “joint understanding” with G7 countries on a global tax deal, under which “OECD Pillar 2 taxes will not apply to U.S. companies.”
“Based on this progress and understanding, I have asked the Senate and House to remove the Section 899 protective measure from consideration in the One, Big, Beautiful Bill,” he said in a post on the X social media platform.
“This understanding with our G7 partners…