LYG - European bank stocks gain after Lagarde sees positive rates possible at Q3 end

U.S.-listed European bank stocks are rising in Monday premarket trading after European Central Bank President Christine Lagarde said the central bank "has been starting the journey down the path of policy normalization" and may exit negative interest rates by the end of Q3. The euro is surging 1.1% against the U.S. dollar after the head of the ECB wrote a blog post mapping out the central bank's intentions. With the prospect of European interest rates entering positive territory, Deutsche Bank (NYSE:DB) U.S.-listed shares are rising 6.1% in Monday premarket trading, Banco Santander (NYSE:SAN) ADRs are gaining 3.2%, Credit Suisse (CS) +1.9%, ING Group (ING) +2.5%. U.K.-based banks, which also do business in the euro area, saw stocks gain — Lloyds Banking Group (LYG) ADSs, up 1.4% and Barclays (BCS), +2.2%. Considering the economic backdrop and risks that currently exist, Lagarde wrote, she expects net purchases under the ECB's asset purchase program to end "very early" in Q3, allowing for a

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European bank stocks gain after Lagarde sees positive rates possible at Q3 end