2024 was an exceptional year for global financials, driven by political events like elections in India, France, and the US, alongside interest rate volatility, with the US 10-year yield showing a 100-basis-point range. Earnings growth, particularly in Europe, where 2025 EPS forecasts rose 10%, and renewed M&A activity highlighted optimism for corporate growth.
In 2025, looser US regulations under Trump may continue supporting M&A, while European banks, undervalued but with strong balance sheets, offer opportunities despite political challenges. Diverging global interest rates will drive varied performance across regions, making precise stock selection crucial. Overall, global financials remain well-positioned for growth as markets navigate these shifts.
Watch the latest analysis from the financial equity team at Algebris with Benjie Creelan Sandford (Equity Analyst).
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