29 July 2016 by lberuti
It was not the most eventful week and it definitely had a summer feel about it. Trading ranges were fairly tight and traded volumes are fading a bit. But the above grapple sums up pretty well what were the main themes. On the one hand, oil had another leg down and, with a slightly more than 20% drop since its June 8th intraday high, it is back in bear market territory. It weighted on the results of the major European oil companies which were reported this week, and the sector which can be found in bottom left corner underperformed the rest of the market. These traditionally low beta names all ended 15bps wider in an otherwise stable market. On the other hand, peripheral banks had a positive run going into the results of the stress test which will be released tonight. MONTE was the standout outperformer, as it was rumoured to be on the verge of finalizing a consortium of 8 banks to guarantee a €5Bln cash call it plans to carry out.