European Banks Resume Gains on Fed Move Amid Lower TLTRO Take-Up

(Bloomberg) -- After three consecutive days of losses, banks got some relief Thursday and lead share gains in Europe.

The Stoxx 600 Banks Index rose 1.8% as of 11:27 a.m. in London, as U.S. Federal Reserve Chairman Jerome Powell signaled there might not be further rate cuts after the central bank lowered the main interest rate Wednesday for a second time this year. The Fed also said it will intervene again in money market rates if needed, as it did earlier this week.

European banks took-up 3.4 billion euros ($3.8 billion) in free long-term loans from the European Central Bank’s Targeted Longer-Term Refinancing Operations Thursday. Demand from the 28 banks that took part was lower than expected.

Spanish lender Bankia SA is the largest gainer, advancing as much as 7.4%, most since early September. Irish lenders Bank of Ireland Group Plc and AIB Group Plc and Germany’s Commerzbank AG are also among the best performers.

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