Lloyds upgraded by Citi as Iran war expected to support bank sector earnings

Lloyds Banking Group PLC (LSE:LLOY) has been upgraded by Citigroup as the US bank's analysts see European lenders as likely to benefit from a stronger outlook for interest rates due to the ongoing economic shockwaves from the Iran war. Events in Iran have shifted the market's rate expectations, with the forward curve now implying two interest rate rises from the European Central Bank this year.