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Garnry: Why my money's on two German banks

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October 27, 2014 audit, balance sheet, banca, banca monte dei paschi, bank shares, banking, banking industry, banking sector, banking system, banks, commerzbank, deutsche bank, deutschebank, ecb, ecb policy, ecb stress, ecb stress tests, equities, equity, equity market, equity market 2014, equity markets, equity portfolio, equity strategy, equity trading, euro, europe, european, european central bank, european economy, eurozone, german, german banks, german economy, germany, greece, invest, investing, investment, investment banking, investment banks, investment strategy, investments, investor, investors, italian, italian banks, italy, saxo bank, saxo tv, spain, spanish banks, stress tests, trading, tradingfloor.com, unicredit
European banking stocks have rallied this Monday off the back of the ECB’s balance sheet test. As the results were better than expected, it’s perhaps not really a surprise. But Saxo’s Peter Garnry says within the Eurozone, there are two tales to tell.

He says it’s a positive story that not a single Spanish bank failed the test and that in Germany Commerzbank also passed. But not such good news in Italy where Banca Monte dei Paschi di Siena needs to raise an additional EUR 2.1 billion. On the other hand, UniCredit, Italy’s biggest lender, did pass.

Peter highlights two German banks that investors should look at. Commerzbank (CBK:GR) has risen almost 15% this month and Deutsche Bank (DBK:GR) 8%. He thinks there are more gains to be had.