I have been watching Sweden’s Svenska Handelsbanken AB for several weeks now as the stock gently moved higher, testing back to horizontal resistance <earnings today haven't provided a catalyst for a move higher, unfortunately, with Bloomberg reporting that

"Svenska Handelsbanken AB reported third-quarter profit from lending that was broadly in line with analyst expectations, as growth in loan volumes across its markets helped offset the impact of falling interest rates."

The bank said that " lending volumes increased in the majority of its home markets, particularly the UK and the Netherlands. However, lower short-term market rates led to a slide in interest rate margins during the quarter.”

European banks are having a mixed day overall, but as you can see in the table below, they have been strong over the last 12 months, driving a rally in wider indices across the continent. The question then are share price is running ahead of what's achievable earnings-wise in the sector?

As our third chart shows, the rally has stalled in the banking sector. What comes next, I wonder?