The prospect of rising interest rates is usually beneficial for financials. Why? Because higher interest rates means that banks can charge more for their loans. BNP Paribas S.A. is a French international banking group. It is the largest French banking group, the largest bank in Europe, as well as the world’s 7th largest bank by total assets. Also, note the seasonals are strong as we come into August. Will shares rise on the prospect of rising US rates?

Over the last 15 years BNP Paribas has risen 73.33% of the time between August 20 and October 05 with an average return of +2.58%. The largest gain was in 2008 with a 15.58% gain. The largest loss was in 2020 where it registered a -12.52% loss.

Major Trade Risks: Any weak US economic data, like a weak September US jobs report could result in slower US policy normalisation and that would not typically benefit financials.