European banks clobbered Monday, led by the beleaguered Italians
The bank sector continues to underperform the overall market in Europe this year
Year to date, the bank sector of the Eurostoxx index is now lower than the overall index — and that includes real dogs like the telecom sector, a big underperformer over the past year.
Despite the passing of the French elections and stronger growth in the European continent, low price earnings ratios and book valuations haven’t lured investors into the black box of European banking.
Banks, moreover, scatter at the first sign of political trouble–as the Italians did yesterday, when former Prime Minister Matteo Renzi reportedly proposed early elections in September. There’s no reason to own them.