uploads///Untitled

Moving Average Analysis of FEZ’s Banking Industry

By

Jan. 4 2016, Updated 9:07 a.m. ET

Banking industry

The SPDR Euro Stoxx 50 ETF’s (FEZ) banking industry provided a return of -0.75% on Thursday, December 31, 2015. Banking stocks like Banco Santander (SAN), Deutsche Bank (DB), Unicredit (UNCFF), BNP Paribas, ING Groep (ING), and Societe Generale returned -1.1%, -0.7%, 0.1%, -0.68%, -1.3%, and -0.5%, respectively, on that day. The Financial Select Sector SPDR ETF (XLF) returned -1% on that day.

Article continues below advertisement

Reasons behind the performance

The continuous fall in commodity and crude oil prices was one of the major factors behind the banking industry’s poor performance in 2015. The banking sector provided high exposure to the oil and gas and metals industry. Due to the continuous fall in commodity and crude oil prices, oil and gas companies weren’t able to pay the debt that they brought from banking institutions. It becomes non-performing assets for the banks. This impacts the banking industry’s profit margin.

Moving averages

The 100-day moving average is a strong resistance point for most of the banking stocks. However, Societe Generale is trading at par with its 100-day moving average. Banco Santander, Deutsche Bank, Unicredit, BNP Paribas, and ING Groep are trading 11%, 12%, 9%, 5%, and 4% below their 100-day moving averages, respectively.

Analysts’ estimates

Analysts’ estimates suggest an upside of 23%, 12%, 19%, 15%, 22%, and 12% for Banco Santander, Deutsche Bank, Unicredit, BNP Paribas, ING Groep, and Societe Generale, respectively, over the next 12-month period from the current levels as of December 31, 2015.

In the next part of this series, we’ll analyze the performance of FEZ’s bottom stocks on December 31, 2015.

Advertisement

More From Market Realist

  • Open sign on a sidewalk
    Macroeconomic Analysis
    Top Reopening Stocks to Play the Shifting Market Sentiment
  • Morgan Stanley sign and stock numbers
    Macroeconomic Analysis
    Morgan Stanley's Buyback Stock Picks in 2021
  • Black Wall Street sign is sign of ethical investing
    Macroeconomic Analysis
    Ethical Investing Stocks and Funds for Your 2021 Portfolio
  • New York City skyline and Goldman Sachs logo
    Macroeconomic Analysis
    Goldman Sachs: Options Trade Picks to Play Earnings Season Volatility
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.