Europe

European bank stocks have climbed more than 25% during the past year as earnings rise. The bloc’s lenders may rally even more amid a surge in stock buybacks and dividends, according to Goldman Sachs Research.

Just as Europe emerged from two years of stagnation, recent weak survey data, increased political risk in light of the European Parliament and French election outcomes and, more crucially, the prospect of heightened trade and security risks depending on the US election outcome — all on top of daunting structural issues — have put the region’s outlook back in question.