iShares MSCI Europe Financials Sector ETF News

The minutes of the ECB's September meeting delivered a couple of interesting insights. Though quantitative tightening currently looks unlikely, it will come eventually.

Sector ETF report for EUFN

The EUFN ETF is supposed to allow exposure to European financials, but it has a major allocation to HSBC. The other exposures look solid and are well positioned for the rate environment.

Wall Street had a great July. Some events like corporate earnings, greenback movement, oil prices' prognosis and inflationary trends will decide the market momentum in August.

The credit cocktail has changed after the European Central Bank announced a 50bp rate hike. Thus, we conclude credit is now looking more attractive due to lower rates and the value priced in.

The European Central Bank has raised interest rates by 50 bps to 0.5% (more than expected).

Europe is facing the risk of an energy shock-driven recession and periphery stress. That's why we think the ECB will stop hiking earlier than the Fed.

Sector ETF report for EUFN

S&P 500 Value and Europe Financials -- two ETFs traded with outsized volume on Friday.

S&P 500 Value and Europe Financials -- two ETFs traded with outsized volume on Friday.

EUFN offers good value and solid income potential. Unsavory inflation numbers could trigger aggressive rate hikes by the ECB which could be good for the net interest margin prospects of European banks

Sector ETF report for EUFN

Sector ETF report for EUFN

Sure, rising rates are a nice backdrop as banks raise the cost of loans faster than they boost deposit rates. But there's a lot already baked in to U.S. banks, some fund managers say.

EUFN invests in European financial stocks. The prevailing price/book value on the portfolio remains firmly under 1.00x, while the forecast forward return on equity is ove