Natwest, HSBC: Buy the dip in European bank stocks, says leading research team

HSBC and NatWest among top picks as analysts argue fundamentals remain intact despite 9% sector decline European bank stocks have fallen 9% since conflict broke out in the Gulf, underperforming the broader European market by 2%, but Citi argues the selloff is overdone and is maintaining its 'overweight' stance on the sector. Its analysts say the decline primarily reflects positioning rather than fundamentals, with banks having been consensus long trades that inevitably suffer when investors reduce risk exposure.