Trump bump: European stocks which benefited the most from the US election

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European stocks have rallied 1.2 percent since Republican outsider Donald Trump won the U.S. election and the "Trump-effect" does not appear to have run out of steam just yet. CNBC takes a look at the best performing stocks in Europe seven days after Trump was announced president-elect of the U.S.:


Aegon has witnessed a staggering rise of share prices since Donald Trump's election victory. The Dutch insurer outperformed all of its peers on the Euro STOXX 600 and soared by 22.2 percent in the week following the election result.

Albert Pleogh, analyst with ING told Reuters that the main contributor to Aegon's share performance was unquestionably, the "Trump effect".

"(This is due) to increasing U.S. interest rates and hope of less regulation for U.S. insurers," he added.

Further to an upcoming Trump presidency, Aegon has benefited significantly from better than expected earnings as the company reported a net income of 358 million euros ($379 million) which compared to a loss of 551 million euros ($584 million) in the same period a year earlier.

Deutsche Bank


Deutsche Bank share prices, in the week following Trump election victory, have also sky-rocketed, this time by more than 18 percent, and were the second best performing in the Euro Stoxx 600.

The struggling German lender has been weighed down for a sustained period of time, not least from the Department of Justice (DoJ), which announced back in September that it was seeking a $14 billion settlement for the way the bank handled mortgage-backed securities in 2008, causing shares to hit record lows.

However, historic ties with Trump could pay dividends in the long run for Deutsche Bank according to Joshua Mahony, market analyst with IG.

"Deutsche Bank shares have enjoyed a substantial amount of upside since Trump came to power, despite their own analysts speculating that the Stoxx 600 would fall 10 percent if he won the election.

"Deutsche (Bank) has been the number one provider of credit for Trump to build his property empire, lending him money time and time again. This clear mutually beneficial relationship has spanned years and the bank will hope it will last many years longer, especially with a huge bill looming from the DoJ," he told CNBC by email.

Mahony argued that the bank, like many other European lenders, could start to reap the benefits of rising global inflation and perhaps even a consistent increase of U.S. interest rates in the coming years.


Barclays share prices appear to have been boosted by the Trump effect as well and investor expectation of less financial regulation and rising inflation in the U.S. has resulted in a share price rise of over 13 percent.

Gary Greenwood, investment analyst with Shore Capital told CNBC via email that market expectations of a Trump administration are of a "less onerous" regulatory regime and projected that Barclays shares could yet rise further still.

"It remains to be seen exactly what policies Trump will implement and how these will play out, but a less onerous regulatory regime and higher US economic growth combined with a steeper yield curve would certainly be supportive of the shares, I think," he added.

Basically, banks


Banks are a common theme for the top performers of European stocks since Trump's victory.

Investor expectations of rising inflation coupled with a perception for financial regulation to be loosened by the brash New York Businessman has proved to be a winning combination for lender share prices.

Credit Suisse and UBS Group share prices have rallied by more than 17 percent while Commerzbank surged over 15.9 percent in the week after the election.

Ion-Marc Valahu, co-founder and fund manager with Clairinvest told CNBC in a phone interview that the Trump effect was clear, "The whole boat floated in terms of the banking sector. It was already moving higher but the expectation of reflation, less financial regulation and a reviving economy will benefit all of them.

"Is this sustainable? Well that is the $1 million question... I mean, short term, this was a huge move so I would like to see some consolidation as it really was too much too fast. Investors need to see a breather so people, who likely missed the move, can have an incentive to get back into banking," he concluded.

BB Biotech

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BB Biotech shares have spiked by over 15.8 percent since Trump became President-elect. Investors in pharmaceutical companies had been fearful of a Clinton victory as the former secretary of state proposed tougher regulation rules and so a Trump win looks likely to make these fears redundant.

Igor Kim, senior analyst with Oddo Seydler Bank, told CNBC in a phone interview that Donald Trump was most certainly the main driver for BB Biotech's share price rise.

"Absolutely, it is easy to see a Trump effect here. People were worried that if Clinton had won, then financial regulation would have been a priority however with Trump, this is not the case.

"The share price has been under pressure since the start of the year and I think they can develop even higher going forwards," he added.

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