Many big European bank stocks booked double-digit increases Nov. 9 upon news that Pfizer Inc. and BioNTech SE's COVID-19 vaccine has proven 90% effective in phase 3 trials.
If the vaccine is approved by health authorities, it could be available for use by year-end, the Financial Times (London) reported.
"Banks had an amazing surge in the post-vaccine result announcement," Tom Kinmonth, a fixed-income strategist at ABN Amro said in an email. "Some key bellwether bank equities gained over 20%." Although bank stocks lost some ground on the gains in afternoon trade, "it does mean that thus far, bank stocks have had a very strong — albeit volatile — day," Kinmonth said.
The STOXX Europe 600 Banks index surged to its highest level in months, reaching 98.70 at 6 p.m. CET, up 12.33% for the day.
French and Spanish bank stocks marked the strongest growth on Nov. 9 with BNP Paribas SA trading 17.98% higher at market close, at €39.21 apiece; Société Générale SA was up 13.24% to €14.81; and Crédit Agricole SA was up 13.67% to €8.45 apiece. Spain's Banco Santander SA gained 17.64% to €2.13 apiece in Madrid and 19.75% to 187.50 pence apiece at the London Stock Exchange. Banco Bilbao Vizcaya Argentaria SA was up 13.58% to €2.86 apiece in London and up 16.65% to €2.90 apiece in Madrid.
Other double-digit gainers were Barclays PLC and Standard Chartered PLC in the U.K., which were up 15.86% at 128.54 pence and 16.49% to 425.20 pence, respectively, at market close. Netherlands-based ABN AMRO Bank NV and ING Groep NV were trading up 15.20% to €8.35 apiece and up 14.28% to €6.93 apiece, respectively.
Shares of big Swiss, German and Nordic banks, including UBS Group AG, Credit Suisse Group AG, Deutsche Bank AG, Danske Bank A/S Skandinaviska Enskilda Banken AB and Nordea Bank Abp also booked gains.