European bank stocks have been on an upward trend since the third week of December following the announcement by the Federal Reserve regarding interest rate hikes by early spring, indicating better business prospects for financial institutions with higher rates and greater margins. The Stoxx Europe 600 Banks Index has gone up 9.8 percent in one month and 5.92 percent during the last 5 days, supported by the Fed minutes released recently that showed a keen focus towards hiking rates earlier than expected. The index touched its highest level since October 2018 outpacing the pan-Euro index which went up 2.35 percent over the month. A coordinated move from the European Central Bank would ensure a significant earnings hike for banks according to analysts. When the central bank raises interest rates, it typically indicates a strengthening economy where unemployment is low and businesses do not require assistance. Banks have lower numbers of …