Source : Reuters lire le PDF

Despite the recent sharp losses in the sector -- which knocked a number of banking stocks below their lows hit in March 2009 during the heat of the financial crisis -- Valerie Gastaldy, head of Paris-based technical analysis firm Day By Day, said the downward potential is now limited.

After a dismal two months from late July to late September, the STOXX 600 banking index as well as the STOXX 600 insurance index have broken above their medium-term downward trends, sending a positive signal.