ACTION ITEMS:
Bullish:
Traders who believe that the news will bode well for U.S. markets might want to consider the following trades:
- Investment banks tend to reflect moves in Europe, so Goldman Sachs GS, JPMorgan JPM, and Morgan Stanley MS should reflect the news, even if their investment in Europe is limited.
- A European ETF such as the Dow Jones EURO STOXX 50 FEX or the iShares S&P Europe 350 IEV may become more affordable on today's news, so investors bullish on Europe for the long term might consider buying into them if they fall on today's news.
Bearish:
Traders who think that today will be a bearish day in America may want to think about some alternatives:
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
- Shorting the above ETFs, or shorting Credit Agricole, Societé Generale, or BNP Paribas BNP may be in order.
- If European drama is too much for your blood pressure, divestment from the continent may be in order. Some traditional banks have already made that move, with a turn to domestic opportunities. Bank of America BAC and Wells Fargo WFC have led the pack towards domestic conventional banking revenues, so a closer look at them may be in order.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.