Citigroup to shell out $7 billion fine
Analysts expected more than twice the amount for Citi to pay
London: European equities rose on Monday, rebounding from near two-month lows after their biggest weekly loss in four months, with banks leading the rally following strong earnings from Citigroup.
The FTSEurofirst 300 index of top European shares was up 0.9 per cent at 1,364.80 points by 1456 GMT, having fallen 3 percent last week — its biggest drop since March.
The STOXX Europe 600 Banking index gained 1.4 per cent to become the top sectoral gainer in Europe after results from US bank Citigroup, which are keenly watched by markets across the world, showed a stronger-than expected adjusted quarterly profit and raised hopes for its peers.
“The market is expecting a good earnings season from the banking sector and Citigroup results have strengthened those expectations,” Lorne Baring, managing director Of B Capital Wealth Management in Geneva, said.
Citibank cleared another hurdle by reaching a $7 billion settlement over its sale of flawed mortgage securities — more than twice what many analysts had expected but less than the $12 billion sought by the government.